internship on unilever
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1. Introduction
a. Report Background: The report Development of an Ecient
Treasury Management Model for nilever Banglades! "imited
has been conceived as requirement of Internship program. This report
aims to look into treasury operations of Unilever Bangladesh, look into
industry practices, benchmark its performance, identify areas of
improvement and design recommendations.
#. $#%ective:
Broad $#%ective: The broad obective of this report is to understand
treasury operations of UB!, benchmark "ith other companies, and propose
recommendations.
&peci'c $#%ectives:
i# $hat is the treasury organi%ation structure&ii# $hat are the treasury activities'operations done by UB!&iii# $hat is the bank a'c structure of UB!&iv# (o" is cash de)cit'surplus managed&v# (o" is the collection process monitored&vi# $hat kinds of collection bank products are used&vii# (o" is the payment process monitored in UB!&
viii# $hat kind of payment products are used by UB!&i*# $hat kind of collection products are used by peer companies&*# $hat kind of payment products are used by peer companies*i# (o" is liquidity risk managed by UB!&*ii# (o" is commodity price risk managed in UB!&*iii# (o" is e*change rate risk managed in UB!&*iv# $hat are the practices of peer companies&*v# In each of the front "hat are the improvement points for UB!&*vi# $hat are the ne" products banks are o+ering "hich "ould add
value in Treasury perations in UB!&
c. &cope: The scope of the report is to have an overvie" of treasuryoperations of Unilever Bangladesh !imited. -ompare operation "ith
other peer companies. The scope of the comparison is on the bank
products used for their respective payment and collection process.
d. Met!odology:In order to conduct this report, secondary information
has been used as "ell primary information source has been used.
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Under primary information collection, follo"ing intervie"s "ere conducted/
i# 0inance -ontroller/ 1r. 2hsan (abib, 0inance -ontroller have been
intervie"ed on several occasions, to understand Treasury
perations and overall )nance overvie"ii# 0inance 3hared 3ervices/ 1r. 3hahadat Ullah, 033 1anager, have
been intervie"ed to understand the payment process and to
understand the requirements of suppliersiii# -4 0inance/ 1r. 251 2mdadullah Bhuiyan, 0inancce 6*ecutive, -4
0inance, has been intervie"ed to understand the collection process
and ho" it is related stock dispatchiv# 1arico Bangladesh !imited/ 1r. 0aisal 3iddiquee, 3r. 6*ecutive,
Treasury, has been intervie"ed to understand the end to end
treasury operations and thus benchmark "ith UB!.v# Berger 7aints Bd !td/ 1r. 1asud 8omani, 2ssistant 1anager of
Berger 7aints Bd !td has been intervie"ed to understand the end to
end treasury operations of the Berger B4
Unilever Bd !td9s treasury operation is governed by its global mandates.
These documents have been studied for a better understanding of operation
policies. In addition to that di+erent facility and service document "ithdi+erent banks have been studied.
e. "imitation
This report has not investigated the cash forecast, bank reconciliation
and other internal accounting entry process. It has overvie"ed the
banking products, banking infrastructure and other IT integration
related to bank process have been looked and compared "ith 1arico
Bangladesh !td and Berger 7aints Bd !td. This report has not made any
cost comparison : rather has looked into process and control issues.
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4ue to time and accessibility constraints other comparable companies
have not been overvie"ed.
(. )ompany Background
Unilever?@s, $illiam (esketh !ever, founder of !ever Bros, "rote do"n his
ideas for 3unlight 3oap : his revolutionary ne" product that helped
popularise cleanliness and hygiene in Aictorian 6ngland. It "as
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ver the last C centuries, Unilever
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Unilever Bangladesh is a leading 0ast 1oving -onsumer Foods -ompany "ith
a heritage of over E> years. Unilever started its onshore operations in
Bangladesh in ?GE "hen its soap factory "as set up at -hittagong. UnileverBangladesh !imited "as incorporated on Huly , ?JC as !ever Brothers
Bangladesh !imited. 7rior to independence of Bangladesh, the company
operated under the name = !ever Brothers 7akistan !imited. 2fter liberation of
Bangladesh in ?J, all the property, assets, liabilities and businesses of
!ever Brothers 7akistan !imited "ere taken over by !ever Brothers
Bangladesh !imited.
2t present, Unilever Bangladesh !imited has its corporate oKce at L8 To"er,
7lot 8o. ;, Moad 8o. >, Fulshan , 4haka ;;, Bangladesh. Its factory and
registered oKce are located at 5alurghat (eavy Industrial 2rea,
-hittagong, Bangladesh. -urrently, UB! is one of the largest fast moving
consumer goods company N01-F# in Bangladesh. It is a leading company in
home, personal care and food products, continuously introducing ne" and
"orld=class products for the Bangladeshi consumers. The company is
engaged in manufacturing Nincluding local third party manufacturing# O
marketing of soaps, glycerin, detergent po"ders, and personal products and
blending and packing of tea for local sales. The company also e*ports bulk
tea, glycerin and other products as and "hen any opportunity arisesUnilever
Bangladesh is market leader in J of the > categories it operates in, "ith G
brands spanning across (ome and 7ersonal -are and 0oods.
Brands of Unilever Bangladesh Limited:
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Unilever is o+ering *norr &oup and Taa+a Tea to quench thirst of its
consumers. 5norr 3oup is a tasty and healthy snack option for J pm meal
moment. 5norr is Unilever9s biggest brand globally, and is no" available in
Bangladesh through 5norr 3oups. There are E variants under it : -hicken
-orn, -hicken Finger, Tomato and Thai soup.
Taa%a stands for premium quality, bringing in the "orld famous tea blending
e*pertise and heritage of the Brooke Bond (ouse. Taa%a stands for freshness
and comes in a special moisture=proof pack that preserves the aroma and
freshness of the tea leaves inside. Its unique blend has maintained its place
in the hearts of consumers "ith the freshest and most revitali%ing cup of tea
around.
Under (ome -are category, ,!eel- im- &urf E/cel and Rinare o+ered to
the market. $heel is an o+ering to millions of "omen across Bangladesh,
helping to transform a tedious chore like laundry into a delightful e*perience
that lifts her spirits for the rest of the day. It is one of the highest selling
brands in Bangladesh.
The brand is available in t"o formats
. !aundry 3oap
;. 4etergent 7o"der
Aim has brought a revolution in kitchen management in Bangladeshi
households. 3ince its launch in ?>J, Aim has been synonymous "ith
sparkling clean dishes.
im &courer 0 Introducing t!e #rand in Banglades!
G
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+ering a more hygienic and e+ective cleaning solution compared to
ash, Aim dish"ash po"der "as )rst introduced to Bangaldeshi households in
?>J. 2 tough, abrasive, multi=purpose po"der, Aim 3courer
leaves kitchen"are beautifully clean and also "orks on a number of other
surfaces.
im Bar T!e core of Banglades! dis!2as! market today
Aim Bar "as a revolutionary innovation for household products : bringing
together tradition and technology : to come up "ith a dish"ash solution in
soap form. Aim Bar is a po"erful grease cutter that removes tough burnt
marks easily. It is also suitable for all types of dishes and o+ers easy cleaning
"ith a pleasing lemon fragrance. The highly popular PAim Bar -hallenge9
campaign generated plenty of hype in households all over the country.
im "i3uid &tepping0up consumers to t!e ne/t level
Aim liquid is another format of Aim that takes utensil cleaning convenience to
the ne*t level. It is specially formulated for taking care of high
quality dinner"are. $ith Aim !iquid, only one "ipe is enough to provide
scratch=free, sparkling clean dishes, as sho"cased in the recent Pne $ipe9
campaign depicting dishes themselves relishing in the sparkling cleanliness
that Aim !iquid provides them "ith.
&urf E/cel
3urf 6*cel believes that dirt is good it is an essential part of a child9s
development. It9s ho" children learn, e*press their creativity, and even
bolster their immune system.
-hildren are so involved in "hat they do that "ithout noticing they can get
dirty in a matter of minutes. (o"ever, 3urf e*cel reali%es that this should not
stop them from trying to e*plore the "orld around them.
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The all ne" 3urf 6*cel has the po"er of lemon, liquid blue and soap bar that
helps in removing multiple stains "ith ust product. 3urf e*cel is the highest
selling premium "ashing po"der in Bangladesh. ver the last t"enty years it
has anticipated the changing "ashing needs of the Bangladeshi homemaker
and constantly upgraded itself.
Rin 4o2er ,!ite: Min 7o"er $hite plays an integral part in helping us to
look good by providing superior "hiteness, giving us the con)dence to reali%e
our ambitions.
3triking "hite clean clothes help us make great impressions on the people "e
meet and also provide us the con)dence to reali%e our ambitions. Min 7o"er
$hite understands this need and strives to deliver best "hiteness.
ver the years, Min 7o"er $hite has undergone several innovations to meet
the changing consumer needs. The ne" and improved Min 7o"er $hite has
the P"orld9s best yello"ness removal technology9, that removes the faded
yello"ed look. Min 7o"er $hite provides a premium laundry e*perience at an
a+ordable price.
Under 7ersonal -are, Unilever is catering the market "ith brands like 5/e-
)lear- )lose p- Dove- 6air 7 "ovely- "ife#uoy- "u/- 4epsodent-
4onds- Re/ona- &unsilk and aseline.
&unsilk understands and has designed its "ash and care collections to
address the most common hair dramas in >@ countries around the globe.
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3unsilk "as launched in ?GE and is no" a global brand "ith presence across
>@ countries. 3unsilk9s hair care range provides a complete hair care solution
and functions as a C=step combination of cleansing, nourishing andmanageability that gives a ;@=something girl the con)dence to e*press
herself.
ariant of &unsilk &!ampoos
&unsilk &tunning Black &!ine &!ampoo: 6nriched "ith 2mla 7earl
-omple* "hich gives long lasting shine.
&unsilk 8airfall &olution &!ampoo:-ontains 3oya Aitamin -omple* "hich
strengthens every inch of hair for strong hair "ith less hairfall.
&unsilk T!ick 7 "ong &!ampoo:-ontains 5eratin Qoghurt 8utria -omple*
that thoroughly nourishes hair from root to tip to give thick and long hair
ariant of &unsilk )onditioners
&unsilk 8airfall &olution )onditioner:-ontains 3oya Aitamin -omple* for
visibly less hairfall.
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In >G?, Mobert -hesebrough, a dispensing chemist, discovered something
ama%ing. (e discovered a @@R natural product, rich in minerals from deep
"ithin the earth yet totally pure, "hich had remarkable healing properties
"hen applied to cuts, burns and abrasions of the skin. That product "as
aseline.
Hust as Mobert -hesebrough in the >@@9s, Unilever continues to be motivated
by a passion and curiosity about skin. It is an incredibly comple* and
miraculous creation of nature : a set of interdependent systems and
elements that even today its not fully understand. It protects us from adverse
climate and from infection. It recreates and regenerates itself through our
lives. It stretches, yet retains its form. It is "aterproof, yet it can emit "ater.
Re/ona"as originally created in 2ustralia in ?@@ by a pharmacist and his
"ife. 3ince then it has led the )eld by providing consumers "ith cutting=edge
technology that is proven to deliver outstanding results.
Me*ona o+ers a "ide range of highly e+ective antiperspirant deodorants to
meet the everyday needs of men and "omen = every"here. Me*ona "ith its
unique active ingredients provides ;E=hours protection against body odor and
underarm "etness to help keep one physically fresh and mentally con)dent,
even in the toughest moments. Me*ona roll=on is available in t"o si%es= E@ml
and ;ml
4ond9s delivers products that make a real di+erence to "omen
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complete beauty solution platform and portfolio that can make "omenEG, 7ond9s has been kno"n for simple, e+ective skin care products
that "ork. That
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Pond's Nourishing Facial cru!: 7ond
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Pond's Moisturising Body Lotion: 7ond
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2ge 1iracle -oncentrated Mesurfacing 3erum and 7ond9s 2ge 1iracle 4aily
Megenerating 0acial 0oam.
Ponds Gold Radiance: 7ond9s Fold Madiance combines the po"er of the best
anti=aging ingredients "ith real gold micro particles to revitali%e and energi%e
skin. It is clinically proven to )ght deterioration in the four dimensions/
te*ture, color, evenness of tone and hydrations.
Fold has been used for skin care for ages. 8o" 7ond9s found a "ay to
combine this "ith the best anti aging ingredients to instantly bring youthful
Madiance back into the skin. 7ond9s Fold Madiance is available in E formats =
Madiance Mevealed 0acial 0oam, 7recious Qouth 3erum, Qouthful 4ay-ream,
and Qouth Meviving 6ye -ream.
4epsodentis committed to bringing the best oral care to families. $ith this
mission, 7epsodent o+ers a "ide range of products for Bangladeshi
consumers, "hich are best suited to their needs
Unique Formulation
7epsodent9s unique Fermicheck formula is forti)ed "ith ingredients that
remove up to ?R germs in ; minutes. 2s a result it prevents common oral
problems such as tooth decay, toothache, gum diseases, plaque and providesstrong and "hite teeth "ith a fresh breath.
Toot!paste
E
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7epsodent9s unique Fermicheck formula is forti)ed "ith ingredients
that remove up to ?R germs in ; minutes. The magnets in the
toothpaste sticks to germs as one brushes and destroys them.
7epsodent $hitening "hitens teeth in ; "eeks. It contains 7erlite, an
e+ective polishing agent "hile helps removes stains. Its formula is
clinically proven to bring back and maintain the natural "hiteness of
teeth.
7epsodent (erbal contains the po"er of natural elements = Basil !eaf,
1int !eaf, -ardamom, 8atural -alcium and 3alt. Its Douride and
calcium makes stronger teeth and prevents tooth decay. Thus, it allo"s
people to eat their favorite food.
Toot!po2der
7epsodent toothpo"der9s Fermicheck 7lus formula )ghts against
germs. Its calcium helps to prevent tooth decay.
Toot!#rus!
The three angled design of 7epsodent 0ighter allo"s the brush to reach
comfortably all the "ay to the last tooth. Brush head shape is inspired
by inde* )nger for better reach. Its inter=dental bristles pro)le cleans
in=bet"een teeth e+ectively and is soft so that they don
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looking great is an integral part of being a "oman. !u* is here to remind,
encourage, inspire "omen and have fun "ith them = because deep do"n,
every "oman "ants to feel like a fortune. n this note, !u* is celebrating
the feminity and playfulness to remind "omen to enoy absolutely
everything about becoming and being beautiful.
!u*, "ith its abundance of e*otic beautyfying ingredients has lead to
beautiful skin = thereby making "omen "ho use it more gorgeous
naturally. In recent times, !u* has embraced beauty and feminity of the
;st century "omen. It aims to be the paradigm of the ne" feminity.
That
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53ua &parkle: !u* 2qua 3parkle, "ith refreshing mineral salts and
sea"eed e*tracts, is the best kept secret to help rene" skin from bored to
full of life.
"ife#uoy9s goal is to provide a+ordable and accessible hygiene andhealth solutions that enable people to lead a life "ithout fear of hygiene
an*ieties and health consequences.
!ifebuoy is the largest health soap brand in Bangladesh. Its vision is to
meet the health and hygiene needs of @ million Bangladeshis. !ifebuoy
is a household name and this health soap is remembered in every sector
of the nation. !ifebuoy is kno"n traditionally for its red bulky bar and
distinct smell but has over the years slo"ly changed to meet the changes
in consumer needs and no" !ifebuoy comes in four germ=)ghting forms.
The latest re=launch of the soap in ;@@? has proven ho" !ifebuoy is in
accord "ith the changing lifestyles and requirements. The ne" mi*
includes a ne" formulation, making it more relevant to both ne" ande*isting consumers.
The ne" !ifebuoy variants are shaped even more eKciently to keep the
soap more dry "hile giving more lather faster and "ith using less "ater,
making them longer=lasting and budget eKcient. The modern packaging
also gives !ifebuoy a better feel, fragrance and e+ectiveness.
The bar soaps are available in t"o variants/
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"ife#uoy Total: This variant o+ers all the goodness of the original red
!ifebuoy "ith an improved ne" fragrance and unique shape. Its unique
germ protection gives all day protection from germ for the entire family.
"ife#uoy )are: This variant is a special formula "hich is gentle and
caring and takes care of delicate skin. It protects from germs all day long.
2nd yet it is mild and gentle and on skin.
!ifebuoy (and"ash
!ifebuoy also o+ers speci)c health bene)ts through its speciali%ed product
formats like !ifebuoy (and"ash. This is a highly speciali%ed hand "ash
product from !ifebuoy available in liquid form. !ifebuoy (and"ash has
been quickly accepted as the fastest and e+ective protection from germs
"ithin @ seconds. 7roven to e+ectively clean and provide care for hands
and "ashing a"ay germs by ??.?R, !ifebuoy (and"ash promises a
healthy lifestyle. It is proven to protect hands from harmful germs that can
cause diarrhea, stomach infections etc. The hand"ash is currentlyavailable in t"o variants Total and -are.
!ifebuoy is continuously improving its ability to )ght germs so that it
keeps its promise to ensure a healthy family.
6air 7 "ovelyunderstands that di+erent people have di+erent fairness
needs based on age or skin type and therefore o+ers e*pert fairness
solutions relevant to di+erent consumer needs
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The $orld9s 8o. fairness cream, 0air O lovely, "as developed in ?J
and is the )rst fairness cream in the "orld. 6ven though, it9s skin
lightening technology is kno"n to be the best in the "orld, this hasn9t
stopped the brand from innovating further to pioneer the development of
cutting=edge fairness solutions.
0air O !ovely understands that di+erent people have di+erent fairness
needs based on age or skin type and therefore o+ers e*pert fairness
solutions relevant to di+erent consumer needs.
0air O !ovely 1ultivitamin -ream
0air O !ovely 1ultivitamin "ith a breakthrough Tri=0air Aitamin -omple*
"orks on key barriers to clear fairness. 0air O !ovely 1ultivitamin o+ers
superior fairness bene)t of Pclear fairness9 that rivals the best professional
beauty treatment, but "ithout bleach or harmful chemicals that can
damage the skin.
0air O !ovely 2yurvedic -are -ream
0air O !ovely 2yurvedic -are -ream o+ers natural fairness solutions for
people "ith sensitive skin. It is enriched "ith the magical 2yurvedic blend
of 5umkumadi il= a mi*ture of G 2yurvedic ingredients, "hich provides
clear fairness even for sensitive skin.
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0air O !ovely $inter 0airness -ream
In "inters, consumers e*press a fairness disappointment because of the
addition of moisturi%ers Ncold creams# to their portfolio. $hile cold cream
helps them combat "inter dryness, it also leaves them looking dark. 0air O!ovely $inter fairness, "ith 1ultivitamins and 2ctive 1oisturi%ers, o+ers
fairness "ith bene)ts of cold cream.
0air O !ovely 2nti=marks -ream
0air O !ovely 2nti=marks o+ers fairness solutions for skin "ith pimple spots
and is targeted to"ards young, teenage girls "ith a dominant fairness
problem of pimple marks.
0air O !ovely 12W 0airness -ream
0air O !ovely 12W 0airness for 1en is ;W better than any other ordinary
fairness cream for men. Its revolutionary Aitama* -omple* and UA )lters
"ork intensely on tough male skin and helps give/ Aisible fairness, Aisible
spot reduction and Triple sunscreen UA protection.
0air O !ovely Body 0airness 1ilk
0air O !ovely Body 0airness milk, "ith its double sunscreen and Tri=0air
Aitamin -omple* gives protection from the sun and matches the fairness
on body "ith the fairness of face. Its gentle formulation gives fairness all
year round.
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0air O !ovely 1ultivitamin 0ace"ash
In 1arch ;@;, 0air O !ovely introduced 0air O !ovely 1ultivitamin
0ace"ash "hich has Tri=0air Aitamin -omple* and 2ntio*idants that "orks
gently on the skin to provide clear fair skin. 1ultivitamin face"ash, "henused "ith 1ultivitamin cream gives double action fairness.
0air O !ovely 12W 0airness 0ace"ash
0air O !ovely is also launching 12W 0airness 0ace"ash for 1en "hich
contains Aita12W -omple* that deep cleanses impurities from tough male
skin to help provide long lasting fairness.
Dove today is in >@ countries making "omen beautiful everyday and
enabling them to enoy their o"n brand of beauty by providing a "ide
range of personal care, hair care, and skin care products. 4ove is kno"n
to be a keeper of promises and has given real products to "omen all over
the "orld.
4ove 3kincare
In the skincare segment, 4ove o+ers facial foams "ith moisturi%ing and
e*foliating bene)ts as "ell as moisturi%ing lotions.
Dove 6acial 6oams
4eveloped "ith a moisture system that both deposits and locks moisture
into "et skin, 4ove 0acial 0oams cleanses and e*foliates the skin, leaving
it visibly more radiant. The t"o variants Beauty 1oisture and Fentle
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6*foliating 0acial 0oams are designed to give great cleansing "hile
delivering on softness.
Dove "otion
4ove lotions are available for pampering skin "ith unique rich
moisturi%ers. It is available in the follo"ing variants/
4ove 6ssential 8ourishment "hich gives 3oftness for longer
4ove Fo 0resh 8ourishment for a -ooling sensation
Dove Beauty Bar
Irrespective of seasons, our skin needs moisturi%ing. $ith 'Eth
moisturi%ing cream, 4ove Bars, 4ove 0acial 0oams and 4ove Body $ashes
provides a complete moisture care. $ith 'Eth moisturi%ing cream blended
"ith cleansers, 4ove Bar cleanses skin "ithout drying it, "hich no soap
can promise.
4ove beauty bars are available in three variants/
Dove ,!ite Beauty Bar: It -ontains 'Ethmoisturi%ing cream and mild
cleansers that leave skin clean, soft and smooth.
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Dove 4ink Beauty Bar/ -ontains'Ethmoisturi%ing cream richly blended
"ith its mildest cleansers, no other beauty bar has more skin=natural
moisturi%ers than 4ove. 6veryday moisture is the key to beautiful skin.
Dove 6res! Moisture Beauty Bar: -ontains an ultra=light hydrating
formula and the crisp, soothing scent of cucumber and green tea. It
7rovides a refreshing, uplifting sensation for skin.
4ove (aircare
4ove kno"s that superior care that deeply nourishes and replenishes is
the only "ay to get truly beautiful hair. (air is depleted of essential
nutrients on a daily basis. This is e*acerbated by the environment, or
"hen hair is genetically dry, or is undergoing aging or being damaged by
styling. That is "hy 4ove has developed speci)cally tailored solutions to
deeply nourish dry hair and repair damaged hair, leaving it properly cared
for so that it feels as good as it looks.
Dove 8airfall Rescue &!ampoo and )onditioner/ -ontains 1icro
1oisture 3erum "hich strengthens hair to prevent it from falling.
Dove Intense Repair &!ampoo and )onditioner/ $ith 1icro 1oisture
3erum and 0iber 2ctives "hich reconstructs hair deep inside and preventssplit ends and breakage
Dove ouris!ing $il )are &!ampoo and )onditioner/ $ith
revolutionary 8utri ils, cleanses hair "ithout drying.
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)lose up= The closer the better our mouths are our gate"ay to life. -lose
up helps people to live life con)dently and brings the taste of success.
-lose up "as launched as a gel toothpaste containing micro="hiteners
and mouth"ash in ?>E, and )red the imagination of the population "ith
it
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they can make the ma*imum impact. That is "hy -lear is the scalp e*pert
that/ o+ers customi%ed solutions for holistic scalp health and helps
harness the po"er of the healthy scalp as the foundation for healthy,
impactful hair
-lear is Unilever9s leading anti dandru+ shampoo brand. 3ince its )rst
launch in ?J;, in 2sia, the -lear formulation has continuously evolved
"ith intensive research and clinical trials conducted by scientists at the
-lear 7aris Institute. $ith a constant focus on leading edge technology,
-lear is pegged as the "orld9s leading scalp care shampoo.
-linical research sho"s that dandru+ and other scalp problems like
dryness originate deep under the scalp. $ashing a"ay visible Dakes on
the surface does little to treat the root cause, "hich is a "eak and
damaged scalp barrier. Thus, dandru+ keeps coming back.
6*perts at -lear understand that scalp is skin. Therefore -!62M has
partnered "ith the "orld9s leading dermatologists from the International
2cademy of 4ermatology NI2-4# to bring the scalp nutrient technology :
ne" -!62M "ith 8utrium @ to its consumers.
To address the di+erent needs of male and female scalp, -lear has come
up "ith 8utrium @ technology for "omen and 7ro 8utrium @ for men.
-ombining the bene)ts of pro=vitamins, minerals and sunDo"er oils,
8utrium @ treats dandru+ at the root/ nourishes the scalp to eliminate
Dakes, soothes dryness and repairs the scalp barrier to strengthen its
natural resistance.
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8e" -!62M 2nti=4andru+ 3hampoo9s 8utrium @ has been identi)ed by
I2-4 as the scalp care technology that "ill lead the paradigm shift in scalp
care management. It took years in the making and is a part of -!62M9s
mission to deliver the most e+ective anti dandru+ shampoo for healthy
scalp and hair. This technology "ill contribute not only to better scalp
health, but also improve dandru+ su+erers9 quality of life.
-!62M variants are
$omen
&oft and &!iny 0Transforms hair from dry to lusciously soft and shiny
5nti08air 6all 0 3trengthens from the root to tip and increases hair9s
defense against hairfall and breakage
1en
)ool &port Ment!ol 0$ith active menthol, for all scalp and hair types
5nti 8airfall0$ith 7ro=3trength Finseng Technology for "eakened hair
)ber, strengthens hair O defends against hair fall
Unise*
)omplete 5ctive )are 0Xuenches thirsty scalp and hair "ith essential
nourishment
Ice cool Ment!ol 0 Mefreshes and revives scalp and hair "ith an
invigorating burst of menthol freshness
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0inance -ontroller
Treasury 1anager
2ssistant Treasury 1anager 0inance 6*ecutive NTr
7ureit is a revolutionary "ater puri)er and the )rst of its kind. It directly
puri)es tap "ater and provides Sas safe as boiled "ater "ithout the
hassles of boilingS. It runs "ithout gas or electricity and hence helps save
valuable natural resources. 1ade "ith high quality plastic, 7ureit9s -lassic
model has a ma*imum capacity of > litres.
7ureit
0inance 4irector
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Chart 1: rganogram o! "reasury #u$ Function
0inance operation is led by 0inance 4irector. $ithin )nance function
there are numerous sub functions : 0inancial 2ccounting, Indirects
-ontrol, 3upply -hain 0inance, Business Unit 0inance N1anagement
2ccounting, Treasury, !egal, Information Technology, Information
1anagement, -ustomer 4evelopment 0inance N-4 0inance# etc.Treasury is under -ontrollers 4epartment and Treasury 1anager
Meports to 0inance -ontroller. 2ssistant 1anager and 0inance
6*ecutive, Treasury.
2lthough this is the local )nance structure, there is continuous
collaboration and operation "ith regional treasury teams.
=. 1 >lo#al Treasury &tructure of nilever
The structural hierarchy of Treasury perations includes Flobal
Megional Treasury team, Megional Treasury team and then local
treasury team. The follo"ing chart provides an overvie" of function of
the global treasury operations/
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-apitalstructureUnileverMisk1anagementUnileverFlobal
BankingMelationsMating2gencies
TransactionalBanking
!iquidity1anagementMisk 1anagement
p-o9s -apital3tructure!ocal 0unding4ecisions
p-o9sBusiness 7artner
Global TreasuryOperations
Corpor
ateFinance
Internati
onalFundingGroup
Flobal Treasury
Chart %: Glo$al "reasury #tructure
Flobal Treasury includes sub functions like -orporate 0inance,
International 0unding Froup and Flobal Treasury peration. -orporate
0inance activities include capital structure and funding decisions.
International 0unding Froup9s activity includes deciding "hat "ould be
minimum risk e*posure of each p-o at any moment "ith a particular
bank, "hat kind of banking relationships do be maintained, analyse
reports from rating agencies of the banks and assess ho" much risk
Unilever "ould choose to have "ith each of them. Flobal treasury
operations do transaction on behalf of local companies. This includes,
0oreign e*change dealing, interest rate risk management, liquidity
management etc. 0or Unilever Bangladesh !imited, FT team is more
involved "ith 0W risk management and counterparty monitoring so that
there is not breach of limit set by I0F team for e*posure at any point in
time "ith each of the bank.
Unilever Bangladesh !imited has to adhere to the policies, any
deviation needs to be communicated to Flobal team and take
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clearance on it. Thus there is continuous collaboration "ith the regional
and global team.
T!e ma%or !ig!lig!t of glo#al mandate includes:
. 7rimary Banking 3tructure/ 2ccording to Unilever Treasury3tandard there are recommended banks "hich "ill be used by
!ocal operations. These banks are termed as Folden -ircle
banks. 2mongst the Folden -ircle Banks, ; tiers are referred/ F
and F;.
7rimarily it is recommended that F banks should be used since
there is global strategic relationship bet"een Unilever and these
banks. ther"ise F; banks should be used. It is recommended
that other bank should not be used. Thus payment, collection
and investment all should be done though the recommended
banks
;. -ounterparty !imit/ The I0F sub function of Flobal Treasury
decides for every legal entity of Unilever "hat "ould be the
ma*imum e*posure at any point in time "ith a particular bank.
This includes, a'c balance, any investment amount "ith accrued
interest as "ell as possible gain from all.
C. 8o Mecourse' Fuarantee to any banks'0Is
=.( Treasury $perations:
In Unilever, Treasury is treated more as a service centre of the
company rather than the pro)t centre of the company. 2lthough idle
cash is invested in interest bearing accounts or in form of )*ed
deposits, but the idea is not make gain from such instruments. UB! for
its foreign e*change risk does hedging, but this is only to the e*tent oflocking the price and kno"ing the cost. It does not do any kind of
currency trading or does not hedge "ith a vie" of making gain.
UB!9s treasury activities facilitates sales team, by negotiating "ith
Bank for easier and faster collection process and providing additional
products to distributors "hich "ill in turn facilitate the sales process. It
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help supply chain = buying team through on time purchasing of foreign
currency for imported goods, negotiating "ith banks for minimum cost
and lo" turn around time helps payment team by arranging fund for
all payment process O introducing products that "ould lessen the
entire payment process. ther than that it is helping the entire
organi%ation through risk controlling and liquidity management. 0urther
details of UB!9s treasury activities are discussed belo"/
. Misk 1anagement/Under risk management, interest rate risk management, foreign
e*change risk management and commodity price risk management.
Interest rate risk management is not relevant for Unilever Bd,
commodity risk management is e*ecuted by global purchasing teams,
and only foreign e*change risk management is e*ecuted in UB!.
Unilever Bd !td huge portfolio items that are imported/ Ma" 1aterial,
3emi 0inished Foods, 1achineries and 3pare parts, 7acking 1aterial
etc. Thus at any point in time UB! have commitment outstanding
"hich "ould include foreign payment. The impact on 7n! "ould be
large for any radical movement in foreign e*change. In order to
mitigate )nancial loss and kno" e*act payable, diligently (edging is
done in terms of 0or"ard -over purchase. The idea is to minimi%e risk
and not think of gain from hedging.
6very "eek, local treasury team calculated their e*posure and ho"
much hedging needs to be done against "hich import. 0rom purchase
team, date of maturity is received and
;. !iquidity 1anagement/ Unilever Bd !td operates on a negative
"orking capital model, thus generally cash is at a surplus level.
!iquidity management initial process includes yearly cash forecast "ith
monthly phasing. n top of it every day possible payable from each of
the bank a'c is tracked. !iquidity management includes proactively
monitoring cash level, "hether it is suKcient to meet immediate
payables, design "ays in case there is a possible de)cit at any
moment as "ell as invest for e*cess amount. U! B4 invests in 0i*ed
4eposits as per global mandates.
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C. Transactional Banking/ Transactional banking includes everyday
transaction "ith bank, transferring funds from each bank to another
depending on funding requirement, defunding to ma*imi%e investment
or increasing balance in remunerating a'c etc. This also includes
foreign transaction settlement. 2ll tangible good procurement is done
through !etter of -redit. $hen documents are coming to banks for
payment and once it is cleared o+ by the supply chain team : treasury
team upload documents request in a "eb portal called 6 5it. This is
basically a portal through "hich communication is made to $orld
Treasury perations team for settling "ith banks. 3ince they do trading
on behalf of all local operations, they actually get bene)ts of
economies of scale, greater leverage of kno" ho" etc.
=.= Banking Infrastructure:
The global mandates require t"o e*ecute operation using one or t"o
banks "hich are under either F'F; categories. These banks are to be
used for local payment, collection, foreign payment, out"ard
remittance, purchase short terms investment products.
-urrently Unilever Bangladesh !imited has banking e*posure in (3B-,3-B, -iti, -B-, BM2- Bank, O 3onali Bank holding ? a'c. The
operations are not restricted to F'F;, due to business requirement
and limitation of recommended banks on type of products and net"ork
base. 3uch deviations have also been approved. The risk pro)le is
maintained by udging the capital base of each of the banks and daily
e*posure or counterparty limit is approved accordingly.
#ollection tructure:
UB! sells through multiple sales channels : general trade, modern
trade, rural, alternate route to market Npollydut and apraita#. UB!
caters to appr* E. lac outlets through ;G distributors. These
distributors are the direct customers of UB!. f the ;G distributors, ;
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distributors are dedicated distributors for $ater Business Nfor 7ureit#
and distributor is dedicated for catering to 1odern Trade
Unilever Bangladesh !imited has unique sales collection structure,
"hereby there is high level of integration "ith collection bank NBM2-
bank#, minimi%ing manual intervention, and makes the reconciliation
process eKcient.
-urrently there are C a'c s "ith BM2- bank. The distributors are
categori%ed in ; categories for collection process : -ontinuous
Meplenishment 3ystem 4istributor N-M3 distributors# and 8on
-ontinuous Meplenishment 4istributors N8on -M3 4istributors#. -M3
4istributors avail credit facility from BM2- bank at about ; to CR lo"er
than market interest rate. This credit facility is in the form of 4facility, and the si%e of the 4 facility is bet"een to ; days sales
volume. 8on -M3 4istributors are not obtaining credit facility from
BM2-.
Both -M3 and 8on -M3 customers use soft"are 413 plus, "hich is
used largely for inventory management, order adustment and placing
order to Unilever Bangladesh !imited. This soft"are is integrated "ith
UB!9s 6M7 and against any order placement data directly Do"s in UB!9s
6M7 and is recorded against each unique customer code. UB!9s 6M7 is
also integrated "ith collecting Bank9s soft"are. The sum total of order
placement of each customer Do"s to Bank.
0or -M3 -ustomer, Bank9s system checks credit limit and cash
availability. In the event the amount suKces, the corresponding
account is debited and UB!9s account is credited. 3ubsequently a
positive feed is transmitted to Unilever. The corresponding customer
balance accordingly is raised and against that stock is dispatched. In
case the amounts do not suKce, a negative feed is transmitted and no
stock is dispatched.
The entire collection process is cash basis and )nancing solution plays
a maor role. 4istributors 0inancing 2rrangement "ith BM2- is on an
understanding basis and has no recourse to UB!. The )nancing facility
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7roportionate 2mnt
delivered4ispatch
3ales rder -ross-hecking "ith
4istributor4eposit
3ales rderFenerated in4istributors
soft"are3ales rder -ross-hecking "ith
4istributorBalance N4!imit -ash
Balance#
4o theamoun
tsmatch
4o theamou
nts
matchQes NBankdebits4istributor,credits UB!#
8odeliver
y
-ollectionBank
e*tended to distributors under this program is used for Unilever
purchase only. This program can be availed by any distributor
0or 8on -M3 -ustomer, in a similar "ay stock order cumulative amount
is transmitted to BM2-. 8on -M3 customers deposit 4emand 4raft or
7ay rder in nearest collection Bank Branch'316 unit. This 44'7
amount is uploaded against the respective customer code by BM2- and
data Do"s back to UB!9s 6M7. 2s per the deposited amount, customer
balance is adusted and stock dispatched. The data Do" is real time
and -ollection bank refreshes in every C@ minutes.
Chart &: 'ata Flo( in Collection Ban)ing #tructure
6very day9s collection from both the customer base are collected in ;
a'c9s and are at day end these ; a'cs are defunded and the collected
amounts are transferred to the third a'c in BM2-, "hich is an interest
bearing a'c . This remains there for ; days and then through a standing
instruction this is transferred to payment a'c in other banks.
C
-M3
collection
a'c
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Chart *: Collection Ban) A+C ,n!rastructure
BM2- has a huge net"ork base as "ell Unilever has been able to
capitali%e on IT integration and distributor )nancing product.
The timing of funds reali%ation by UB! di+ers across di+erent depots.
2t present, ?R of UB!9s funds get cleared on day , ;;R in day ;'C and
the remaining G?R take more than C days. 3ometimes this G?R of
funds take C to @ days to be cleared by the banks because of location
distance.
Though the fund reali%ation is taking time, but the bank transaction
process is very immediate. The funds are credited instantly or at day @
by the banks and the goods are dispatched from the depots "ithin to
C hours after receiving the orders. (ere, the time varies because of
di+erent collection modality.
Beside this basic transaction facility, the banks provide additional
services to UB!. 0or e*ample, BB! accepts small notes from UB!
distributors.
In case of erroneous information provided by distributors, banks
urgently notify the both parties and request the distributor to correct
the information as soon as possible.
If any 44'7 is lost, then a Feneral 4iary NF4# has to be )led by the
liable party Neither bank or distributor#. 2fter this, a stop payment
order and a ne" 44'7 are issued by distributor.
3crap sale collection is maintained in 3-B. There aren9t much value
addition done on this, and the reconciliation process is manually. 3ince
CG
2t day end
collection
transferred
to interest
bearing a'c
-ollection
amnt
transferredto paying
bank on Crd
day
2ssigned
payment a'c
in other ban
Interest
bearing
a'c
8on -M3
collection
a'c
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such collection occurs at in frequent basis, this part is not kept under
general collection modality.
Payment tructure:
7ayments are routed from banks and there are di+erent types ofpayment generated from di+erent units thus separation is maintained.
If payment nature is considered, there are import payments through
!-'!-2, foreign out"ard remittance through s"ift Nfor intangible item#,
local payments to vendors, duty payment in government a'c.
Import payment is processed through normal banking process. Items
are imported through opening !- or !-2, and on arrival documents,
document currency is purchased from bank and the documents are
settled accordingly. Banks debit a'c account accordingly. UB! enoys
minimum charge dedicated courier service etc. C banks are kept as a
part of back up as "ell segregation of item.
0oreign out"ard remittance are items payment to a foreign entity
occurring made through foreign currency for an intangible item like
agency fee, consultancy fee etc. 0or some of these payments pre
approval of Bangladesh Bank is required and kno"ledge basis is given
importance in selecting from "hich bank to route these payments.
!ocal payments are made to di+erent kind of vendors, "hich are
generated from both 4haka as "ell as -tg location depending from
"here the procurement "as made. 1aority of payment Do"s from
(3B- a'cs. 7ayment requests are generated in UB!9s e*isting 6M7.
nce these are internally approved, payment )les are transferred the
bank9s system. 4epending on the a'c either instrument are printed in
(3B- premises in 4haka or -hittagong. The instrument bears
approvers signature. These are then delivered to Unilever oKce Neither
4hk or -tg#. 7ayment to vendors is accordingly done. This has lessened
the manual ob as "ell as there is no cost on printing and delivery of
this. ther than this modality there are very fe" local payments made
through manual process.
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%nvestmentsare basically in the form of )*ed deposit. Usually these
are kept for tenure ranging from month to C months. These are only
done in approved banks.
?. 4eer )ompanies< 4ractice
To understand and benchmark Unilever Bangladesh9s treasury operations,
1arico Bangladesh !td9s O Berger 7aints Bd !td9s treasury operations have
been overvie"ed.
?.1 $vervie2 of Marico Banglades! "imited
1arico Bangladesh !imited N1B!# holds a leadership position in the 01-F
space.
1B!9s 7roducts in 7ure -oconut oil, 6dible il, (air care and 3kin -are reach
out to more than @@,@@@ outlets in Bangladesh. 1B! touches the lives of
out of every C Bangladeshi through its portfolio of brands such as 7arachute,
3a+ola, (air -ode, 2romatic, -amelia and Beliphool to name a fe", most of
"hich enoy leadership positions N8o. in coconut oil segment#, "ith
signi)cant market shares in respective categories.
Brands of Marico Bangladesh Limited
7arachute is one of the largest brands in Bangladesh and is the undisputed
leader in the branded coconut oil segment, commanding a market share of
almost JCR. It is one of the most trusted brands in the country. Mecently
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a"arded the Gth Best Brand in Bangladesh by Brand 0orum, 7arachute "as
also ranked the Crd Best Brand amongst 01-F brands. 7arachute has come a
long "ay since its launch in Bangladesh in the late
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7arachute Therapie "as launched in 2ugust ;@@>. It has already established
itself as the only
e*pert hair fall solution. 7arachute Therapie addresses M40 Nroot destroying
factors#, a combination of stress, pollution, quality of "ater, imperfect hair
care, imbalanced diet and ageing = the main cause of hair fall. 7arachute
Therapie has natural Moot 2ctivising 2lpha 7roteins, a unique blend of
proteins, vitamins, herbs and minerals that reduces the e+ect of M40,
bringing a reduction in hair fall in ust E days.
&a@ola
1arico Bangladesh !imited launched 3a+olaY Fold, the st ever blended
edible vegetable oil in Bangladesh on ;Crd 2pril9@. 3a+ola Fold has the
unique composition of >@R Mice bran il and ;@R 3aZo"er'5ardi il.
Mice Bran il NMB#/ (eart healthy nutrients in MB such as tocopherols,
tocotrienols and ory%anol are kno"n for their cholesterol lo"ering ability.
Besides, MB also has a high percentage of monounsaturated fatty acids,
"hich have been proven to not only reduce the Pbad9 !4! cholesterol levels
but also increase the levels of Pgood9 (4! cholesterol in blood.
3aZo"er 3eed N5ardi# il/ !inoleic acid, an omega=G=polyunsaturated fatty
acid, is present in a high percentage in saZo"er oil and is very potent in
reducing cholesterol levels.
8air )ode 8er#al 8air Dye
(air -ode (erbal (air 4ye "as launched in Bangladesh in ;@@>. It is available
in Gg sachet packs. 7eople use di+erent hair dyes to cover premature greying
as nobody likes to have an elderly look and hence, a lo" self esteem. These
dyes have chemicals only "hich may lead to hair damage. (air -ode (erbal
(air 4ye has the goodness of (enna, 2mla O (ibiscus. $ith regular usage,
(air -ode gives you shiny black hair evenly for longer period, making your
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hair soft, smooth and "ell nourished, giving you the con)dent, smart look
that others admire.
5romatic
1arico acquired Brand 2romatic from 2romatic -osmetics !td. in ct ;@@
and re=launched the brand as 2romatic Fold in ct ;@@G. 2romatic brings you
gently fragrant beauty solutions, from the treasure trove of 1other 8ature. 2
beauty soap "ith the goodness of age=old natural ingredients that protect the
skin and nourish it at the same time. The brand stands for modern beauty
and traditional values.
e2 International )amelia
-amelia is enriched "ith a unique, long=lasting fresh Doral fragrance to keep
one feeling active and refreshed throughout the day. It has Aitamin 6 added
to it to nourish the skin. It is suitable for all skin types. -amelia Beliphool is
available in all leading outlets in packs of Jg. The s"eet and soothing
fragrance of Beliphool helps to calm the mind and makes one feel cheerful,
refreshed and con)dent, all day long. Its Aitamin 6 property conditions,
nourishes and protects the skin, leaving it glo"ing and beautiful.
*-1-1 "reasury .erations o! Marico Bangladesh /imited
)ollection 4rocess
1arico Bangladesh !imited N1B!# has sales depots in Bangladesh. They are
in 4haka, -omilla, -hittagong, Hessore O Bogra. 1arico9s G@R of sales andcollections are done in 4haka region. To ensure this, the company has a sales
force, consisting of J@@ distributor9s sales representative.
Performing Ban&s ()ercising %nstruments
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E di+erent banks are involved in managing the collection process of 1B!.
They are 3-B, -iti Bank 8. 2., (3B- and BM2- Bank !imited. The company
does not make any sales on credit. They only receive 44s, 7s and
sometimes cash. 1ost of the transactions are through -iti Bank. (3B- deals
"ith 4haka region and receives only 44s, "hereas, BM2- bank accepts cash
only from -hittagong region.
The distributors can deposit 44s, 7s to the mentioned banks "ith necessary
information regarding sales order. The instruments are also can be deposited
to the nearest depots. In that case, bank representatives collect them from
those depots and deposit them to the respective banks.
*iming
The average collection time of 1arico Bangladesh !imited di+ers "idely for
depots because of geographical distances.
"a$le 1: /ocation (ise Clearance "ime !or MB/
!ocation 2verage -ollection Time4haka day-hittagong E= daysBogra C=E days
Hessore C days-omilla C days
3o, the timing of crediting the funds di+ers across regions. The goods are
dispatched only "hen the instrument is physically reali%ed. 2nd because of
this there is a time lag bet"een funds received and goods delivered by the
company.
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M% +iftness
1arico receives 1I3 only from BM2- Bank !imited once in a day. But for
-hittagong transaction, it sends 1I3 in every ; hours. 2lthough, -iti Bank still
does not provide direct 1I3, but they are in the negotiation process "here -iti
"ill send 1I3 to 1arico t"ice a day. (o"ever company regularly gets to kno"
"henever the -iti Bank representatives collect 44s from company depots.
,ther ervices
1arico faces diKculties in BM2- bank in terms of small notes, as the bank
only accepts notes above @@tk, in some region due to their limited vault
capacity.
In case of erroneous information provided by the distributors, banks block
that respective party account and issue'raise 4ebit 8ote'7 "hich refers that
the distributor o"es money to the company. 2nd until that party pays the due
amount, he cannot give any further order in the future.
$henever any 44'7 gets lost, the bank )les a Feneral 4iary against that
instrument. But it may take a month to recover the money. (ere, 1arico
suggests that it "ill be eKcient if the F4 is )led by the courier service. The
bank can keep the main copy and send another copy to the company. Then
the company "ill for"ard it to the distributor and tell them to issue a stop
payment order. 2fter this, the distributor has to issue ne" 44. In this "ay,
collection "ill be recovered "ithin a "eek. But here, the company has to bear
the cost of 44.
In case of IT failure or do"n serer, the banks provide the physical list or
scanned copy of transactions to the company. (ere, the problem is that the
company has to make physical entry of those transactions "hich is time
consuming.
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The banks also provide immediate service in case of long'slo" moving queue.
If it is possible to inform the Melationship 1anager NM1# of the bank earlier
then special arrangements can be ready for that speci)c day to operate the
transaction quickly.
Distri!utors Product
1arico9s distributors are enoying check "arehousing facility from 3-B. If a
distributor kno"s its total monthly requirements then he can place early
orders to the bank. Then the bank "ill place the orders on the speci)c issuing
dates to the company.
ecurity
The banks are al"ays alert about security issues. $henever they detect any
fake currency, fake 44'7 or face any reection of 44'7, they notify the
company as "ell as the distributor about the occurrences. Beside this, banks
block the distributor account so that transactions cannot be made against
that instrument. But no parties repeat this incident again. 2nd basically no
aKrmative actions are taken by the company.
,ther Pro!lems
1arico sometimes faces reconciliation problems from the performing banks.
0or e*ample, in case of any collection entry for 4haka region, they credit
company9s current account instead of 4haka account. ther than these,
1arico Bangladesh !imited does not face any maor diKculties.
4ayment 4rocess
The payment process of 1arico Bangladesh !imited is quite simple.
Performing !an&s e)ercising instruments
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1arico9s payment process is done through ; di+erent banks -iti Bank 8. 2.
and (3B-. The maority of transactions are processed through -iti Bank. 2nd
the payments are made by cheques.
1arico Bangladesh !imited has ; payment days in a "eek 1onday and
$ednesday. 3o, 1arico makes >=? payment cases monthly.
*iming
1arico can provide payment instruction anytime during the banking hour :
this is for both !- settlement payment as "ell as local payment. There are
cheque "rite soft"are installed of -Iti, (3B- and 3-B. Thus cheques are
printed, "hich is minimi%ing the manual error. But again these cheques need
to be signed manually once the printing is done. The cheques are delivered
through physical collection from vendor as "ell as through courier. Aendors
later submit these cheques for encashment. It is often found that the Bank
system is updated at a later hour. (ence "hen a'c balance is checked, often
the volume of cheque encashed is missed and may result into negative
balance.
M% +iftness
The tracking system for 1arico9s payment process is not satisfactory. They
actually do not get any 1I3 or noti)cation information regarding any payment
instruction. They only get 1I3 in case any kind of reection.
,ther ervices
The banks provide immediate service in case of long'slo" moving queue. But
for this, they are needed to be informed earlier.
ecurity
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In case of any reections, banks provide instant noti)cation to the company.
Then they recheck, verify the documents as "ell as accounts and resend the
payment instructions.
?.( $vervie2 of Berger 4aints Banglades! "imited
Berger 7aints is one of the oldest names in the paint industry, yet, it is one of
the most technologically advanced companies in the country. It is constantly
striving for innovating superior quality products and services. $ith more than
;@ years of rich heritage, Berger manufactures "orld class paints for all
kinds of substrates and also provides unparallel services.
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Berger9s inception "as laid out in JG@ by a Ferman national named !ouis
Berger, "ho started dye and pigment making business in 6ngland. !ouis
involved his family into the business and eventually changed the status of the
company to !ouis Berger O 3ons !imited. The company gre" and e*panded
rapidly "ith a strong reputation for e*cellence in innovation and
entrepreneurship. In the initial years, !ouis successfully re)ned the process of
manufacturing 7russian blue, a deep blue dye. This dye "as "idely used for
the uniforms of many 6uropean armies of that time. 7roduction of dyes and
pigments evolved into production of paints and coatings, "hich till today,
remains the core business of Berger. The company gre" rapidly, by
establishing branches all over the "orld and through mergers and
acquisitions "ith other leading paint and coating manufacturing companies.
Berger 7aints started Ppainting9 Bangladesh since independence. ver the
past fe" decades, Berger has evolved and transformed itself in becoming the
leading paint solution provider in the country "ith a diversi)ed product range
that caters to all your painting needs.
Berger has heavily invested in technology and Mesearch O 4evelopment
NMO4# compared to any other manufacturer in this market. Investment in
technology and plant capacity is even more evident from the establishment
of 7o"der -oating and 6mulsion plants at the 4haka factory. The state=of=the=
art 4haka factory is an addition to Berger 3ales 4epots
strategically located at 4haka, -hittagong, Mashahi, 5hulna, Bogra, 3ylhet
,-omilla and 1ymensingh has an unmatched capability to ans"er to paint
needs at almost any"here in Bangladesh.
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Berger
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Hhilik paints, 2sian paints, Mo*y paints, 2nchor paints, 7ailac paints etc. The
secret behind this huge gro"th and leading position of B7B! is no quality
compromise commitment and importance to any customer claims.
B7B! has ? depots at ? di+erent areas of Bangladesh. They are in 4haka,
-hittagong, -omilla, Bogra, Mashahi, 5hulna, 1ymensing, Barishal and
3ylhet. B7B! is a dealer based business. The company has appro*imately
;;@@ dealers "ho are "orking for B7B!.
Performing Ban&s ()ercising %nstruments
The collection from the dealers is happened mainly through -iti Bank 8. 2.
The areas, "here there is no branch of -iti, I0I-, Ismali Bank and 3outh 6ast
Bank "ork as collection banks under direct guidance of -iti. 2ll the collections
take on an average of days to be collected by the company. 7er month
only R of the sales of the company remain as outstanding on an average.
B7B! has C@ day terms of condition for sales. 2nd the dealers get di+erent
facilities and'or penalties for paying early, in=bet"een and delayed payments.
The banks receive cheques, 44s and 7s from the dealers as collection
instruments. The dealers deposit them to the nearest depots. 2nd then,
banks representatives collect them or depot representatives send them to the
banks for further processing.
*iming
The average collection time of B7B! Ductuates from J to days for di+erent
locations. 4haka and the nearest locations have an average collection time of
J days "hereas the others have an average collection time of days.
"a$le %: A0erage Clearance "ime !or Berger Paints Bangladesh /imited
"ocation 5verage )ollection Time
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4haka, -omilla O 1ymensignJ days
-hittagong, Bogra, Mashahi, 5hulna,
Barishal O 3ylhet days
3o, the timing of crediting the funds varies from J to days for di+erent
locations. But the good are dispatched from the depots "henever the
requirements are sent by the dealers.
M% +iftness
The 1I3 update frequency is very high and satisfactory in the collection
process of B7B!. -iti Bank 8. 2. provides noti)cation after occurrence of
every transaction in a day. 3o, B7B! gets instant and continuous information
of each and every collection procedure.
,ther ervices
The banks provide various useful services to B7B! for di+erent issues. 0or
e*ample, in case of erroneous information provided by dealers, banks notify
the parties as soon as possible and request the dealers to alter and adust the
necessary information of that particular instrument or documents.
If it is a matter of lost 44'7, the bank noti)es both of the parties and tells
the dealers to issue stop payment order against it. 2fter this, the dealers
have to issue ne" 44'7 for that transaction. (ere, 44'7 can be lost both
by the bank and the dealers. But the ultimate processing against this activity
has to be taken by the dealers.
3ometimes, the banks face 1I-M machine diKculty because of endorsement
problem or signature mismatch. In this case, the banks )rst identify the
ground of the problem, verify the issues and ask dealers to adust or replace
it soon. To reduce this problem, the bank has a penalty policy N@@ Tk.# for
every dishonored transaction because of 1I-M problem.
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In case of long'slo" moving queue, B7B! gets favor from the banks. The
company has given a special card by the bank so that the representatives
need not to "ait in the queue and they are served instant. 2s B7B! has
products above @@@ Tk price, so, the banks do not accept any small notes
against B7B! products.
ecurity
The banks are very alert about security issues regarding transactions "ith
B7B! -ompany. The chance of any kind of reections, fake currency or 44'7
detection is very rare, around @.@R. Both the performing banks and dealers
are very careful about these issues. 2nd the banks are highly instructed to
handle these situations carefully and strictly.
4ayment 4rocess
The payment process of B7B! is very straightfor"ard. The B7B! portfolio of
collection and payment process is very stable and strong. 0or this reason,
other companies like to adopt or follo" theirs transaction process.
Performing !an&s e)ercising instruments
B7B!9s payment process is done through E di+erent banks/ 3tandard
-hartered Bank, -B of -eylon, -iti Bank 8. 2. and (3B-. 1ost of the
transactions are done through 3tandard -hartered Bank. 2nd the local
payments are made by cheques. 2ll the transactions are made during the
bank as "ell as company oKce hour time.
*iming
The timing of B7!9s payment process is very fast. $henever electronic fund
transfer instructions of sending funds requests are uploaded, the debiting of
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account, any advice of Nun#successful transaction is made instantly. There is
no time lag bet"een these procedures. -heque printing procedure is same as
that of 1arico9s.
M% +iftness
Though B7B! does not get any 1I3 or noti)cations from any of the banks, but
the company can get information "henever it asks from the banks.
ecurity
2s mentioned before, the security system of the banks, in case of transaction
"ith B7B!, is very high. But to avoid the 1I-M machine problem, B7B! is
planning to avoid mannual signature process and to have scanning signature
facility very soon.
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?.= )omparative analysis of Treasury $perations of nilever
Banglades! "imited
-omparative 2nalysis is done on ; parameters collection process and
payments process. Fround on "hich comparison are brought/ Instruments
used, s"iftness, 1I3 received and IT platforms used, security, other value
added services.
)ollection 4rocess
Berger has a more comple* collection process than the other t"o. Berger is
operating by providing credit, thus reconciliation process requires more
vigilance.
2lthough banking infrastructure is almost same amongst the C companies,
but UB! scores better in terms of IT infrastructure and 1I3 update. This is
allo"ing reconciliation "ith minimum intervention in system. Unilever is only
dispatching goods only "hen in internal system collection is recorded. The
time from physical collection to recording is usually less and there is less
likelihood of incorrect recording.
2ll the C companies have the same pitfall "hen funds are collected through
44'7. The encashment time is long thus cash utili%ation process and return
from unutili%ed cash goes do"n. Unilever needs to look into ne" techniques
and structuring to ensure that encashment occurs.
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Berger and 1arico has to endure diKculties in times of lost instrument from
either banks9 courier end or the teller end, as the organi%ation itself has to
ensure that F4 is done by the distributor and accordingly duplicate 44 is
issued "hich itself can take a long time. The bank receiving the instrument
has to take the responsibility.
Recommendation for )ollection 4rocess
3ales is the ultimate obective for and organi%ation thus a smooth collection
process is an important capstone. Unilever is reali%ing on T@ "hen funds are
transferred from distributors a'c to Unilever a'c in BM2-. 0unds can also be
transferred interbank "hen the banks are online bank. 3uch transfer over
B60T8 NBangladesh 6lectronic Transfers# payment con)rmation comes at
least the ne*t day or more. This "ould impede the on time transfer of
products at distributors end. UB! can initiate the process of all distributors a'c
opening in the collection bank. This "ould enable actual cash collection to
occur in T@. 2nother possible solution could be to avail a product like bill
purchase line : this "ould mean on collection of instrument bank "ill credit
equivalent amount in UB!9s a'c. But usually such products are costly.
2ll the organi%ation faces diKculty at times "hen the instrument gets lost in
courier service or at teller front. It can be agreed "ith bank, that if such loss
occurs at bank or other organi%ation appointed by bank, "ithout delay
equivalent amount to be credited to UB! a'c and duplicate 44 issuance can
be done in favor of the collecting bank. This "ill help both the distributor and
UB!.
4ayment 4rocess
2mong the C companies, UB! uses the most variety of instruments to make
its payments to di+erent entities. The timing of the current payment process
of B7B! and UB! are e*cellent "hereas 1B! takes more time to perform the
transaction.
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The 1I3 s"iftness of 1B! is not satisfactory. n the other hand, B7B! and UB!
have very satisfactory 1I3 services from the banks.
-heque printing activity has been largely outsourced, but cheque delivery to
vendor still remains "ith Unilever. ften timely delivery does not happen.
Recommendation for 4ayment 4rocess
Mecently B60T8 has been implemented in Bangladesh as discussed before.
UB! can use this product. This "ill mean there "ill be minimum number of
cheque printing and fund "ill be electronically transferred. This "ill reduce
lead, and bank reconciliation process "ill be much easier.
In case during the internship period, this net"ork has been initiated and
interbank transfers "ithin UB! a'c s have been started. 0or vendors piloting
has started, and it has been planned that ; most frequent and reasonably
high value vendors9 payment "ill be transferred through this net"ork.
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A. )onclusion
Treasury 1anagement in Unilever Bangladesh includes activities of risk
controlling and service delivery to di+erent stakeholders. The function
includes activities ranging from cash forecast, liquidity O investment
management, foreign e*change e*posure management, handling
payment and cash collection process.
2 maority of the day to day activities includes "orking "ith banks and
ensuring that best value added deliveries are crafted in order to
provide best service delivery to di+erent stakeholders ranging from
other functions of the organi%ations to distributors and suppliers of the
company.
The comparative analysis is done "ith another ; peer companies to
understand and benchmark the practices and )nd any gap areas that
Unilever can improve on. In collection front UB! is using instruments
like direct debit and 4emand draft'7ay rder. The system integration is
strong and is minimi%ing manual input and thus minimi%ing possibility
of error and making processes real time. The collection bank is also
o+ering credit line to distributors, "hich is aiding them in being able to
purchase "ith lo" hindrance due to shortage of fund. The gap
observed is in the delay in cash reali%ation "hen instrument other than
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direct debit is used. -ompany can revie" "hether distributors can
open account in collecting bank so that direct debit can be used. 2lso
there are ne" products like bill purchase line, "hich can also be used.
Being a manufacturing company UB! has both import and local
transactions. In case of import transactions, the products are
homogenous, although UB! is enoying some customi%ed services like
dedicated delivery and courier service etc, but the point of distinction
is not much. In case of local payment, once again UB! is "ay advanced
in terms of IT integration. UB! can take leverage of electronic fund
transfer, "hich "ould ensure that payments are cleared on time and
minor manual obs can be avoided.
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