BML-Brummer

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BML is a leading electronics and home appliance retailer in Bangladesh selling mainly refrigerators, televisions and air conditioners. BML is the sole distributor of LG products in Bangladesh and also sells two major Chinese brands (Hisense and Kelon) as well as its own brands (Butterfly and Eco Plus) through its retail stores and dealership outlets. BML is in the process of establishing an assembly operation for their three main products, that is - refrigerators, room air conditioners and TV’s and intends to complete this facility in the next 24 months.BML’s current and planned operations are summarised as follows: Current operations:BML is operating 200 retail stores and 455 dealer outlets across Bangladesh in owned, rented or leased premises in well established urban commercial areas. 19 retail stores are directly owned by BML and the average floor space of the retail stores and dealer outlets ranges from 230-280 m2. BML is operating 9 warehouses across the country in owned, rented or leased premises. 5 warehouses are directly owned by BML and the average area per warehouse is 2600 m2. SKD (“semi knocked down”) assembly of CRT (“cathode ray tube”) and LCD (“liquid crystal display”) TV’s for Hisense and LG brands. The TV assembly factory production capacity is 150,000 per annum with commercial operations having commenced in February 2012. The main operations for this factory involve assembly, testing, packing and dispatch. Planned operations (“Project”):Addition of around 150 new retail stores and dealer outlets in 2 years in Bangladesh.CKD (“completely knocked down”) assembly of refrigerators for Butterfly, Eco Plus, Kelon, and Hisense Brands. The production capacity for a one shift operation is 200,000 refrigerators per annum and it is expected to start production in December 2012. Main operations in the plant will include cutting, punching, bending of pre-painted sheet metal, polyurethane (PU) foaming for insulation, assembling, testing and quality control and dispatch. Most of the materials like compressors, sheet metal, copper tubes and; chemical for PU foaming; etc. will be imported. There will be no painting operation required as pre-painted sheets will be procured. SKD assembly of room air conditioners and refrigerators for the LG brand. The production capacity will be 200,000 refrigerators per annum and 30,000 air conditioners per annum based on single shift operations. The production expected to start from June 2013. The Project consists of equity and a debt investment by IFC.