Subject: Internship report submission on "Opportunities of Industrial Gas Sector in Bangladesh: Evidence and Role of Linde Bangladesh Limited". wishes to submit an internship report on "Opportunities of Industrial Gas Sector in Bangladesh: Evidence and Application of Linde Bangladesh Limited". The study presents the current status and prospects of the industrial gases sector in Bangladesh, focusing on the role of Linde Bangladesh Limited in this regard.
From the perspective of Linde Bangladesh Limited, this report discusses its position in the market and how it stands out against its competitors. This report therefore provides an important insight into how the future of Bangladesh is shaping up and how it affects the future of Linde Bangladesh Limited in the country.
Introduction
- Role of Linde Bangladesh Limited in the Industrial gases sector of Bangladesh
- Industrial Gases Sector of Bangladesh
- Rationale of the Study
- Background of the Study
- Limitations of the Study
This is puzzling because according to the study by the US Geological Survey and PetroBangla, Bangladesh has undiscovered natural gas of about 32 trillion cubic feet. But according to the company's perspective, there are many that offer varieties of gases such as hydrogen, helium, carbon, nitrogen, acetylene, oxygen, propane, methane, etc. Moreover, one of the main problems is when we move on to the scorching hot summer. electricity,.
According to Professor Imam Badrul of Dhaka University, Bangladesh is not running out of gas anytime soon. It was not possible to go to the Rupganj plant and see the gas plant of Linde Bangladesh Limited as I was just a trainee and only permanent employees were allowed in those premises.
Objectives of the Study
Broad Objectives
Specific Objectives
Methodology of the Study
- Data Design
- Sample Design
- Analytical Tools
- Model Specification
In conclusion, the data collection process involved a combination of these 3 types of data to help determine the results and provide appropriate recommendations to users. This is a technique where a sample is taken from a large population with a random starting point, but each data point in the data set has a specific periodic interval. Since there is a lot of metadata in the population, which is not exposed to manipulation, the systematic sampling technique was chosen for this reason, and the years of the test are consecutive from 1980 to 2021.
In the regression analysis, the variable data is provided for 42 years starting from 1980 to 2021. All the data are collected from different sources which will be provided in the reference section of the report. There is a mix of sources for the data as all the data is not available in a single source for which the findings will never be 100% accurate.
Data from Excel was imported into this software and all variable settings such as data type, measure, decimal value, label, etc. were adjusted. By assessing the demand for gas, we can get to know the potential market of the industrial gases sector in Bangladesh and will be able to determine certain paths that will lead to the economic and financial development of our country and will be able to access our countries resource pool accordingly. Given the development, the relationship between gas demand and other independent variables is considered.
Among these 4, the two variables consisting of total GDP and GDP growth indicate the same factor. This model is used to find out the relationship between the dependent variable and independent variables and to make a predictive analysis of the future results based on the data after grouping them according to the variables. Since the relationship is linear, the data that has been collected will form a linear relationship if plotted on a graph.
Literature Review
Demand of Gas and GDP
Using a SWOT analysis of Linde Bangladesh Limited, we will learn about the strategies and methods that help them maintain a superior position in the market and to tackle the challenges common to the industrial gas sector. The business portfolio of Linde Bangladesh Limited is diverse and no other company in this industry provides such a variety of products and services to its customers. As we know, during the COVID-19 pandemic, the demand for medical oxygen exceeded estimates and Linde Bangladesh stepped up to supply it to hospitals, homes and other institutions.
Since Linde Bangladesh Limited has a diverse portfolio, there are not exactly many customers that match their criteria. As we can see from our regression model and the graphs, the demand for industrial gas is growing and due to the rapid industrialization in Bangladesh, there is a huge opportunity for Linde Bangladesh to expand and gain new customers. The reputation along with the market share held by Linde Bangladesh Limited is under greater threat.
With the financial analysis of Linde Bangladesh Limited, we will determine their financial performance and assess how they maintain their performance. From the analysis of the ratios, we can conclude that Linde Bangladesh Limited is in a good position compared to its peers. In short, by analyzing all five standard ratios, we can conclude that Linde Bangladesh Limited has good profitability, liquidity, leverage, valuation and activity ratios, which show that they are running their business activities smoothly and efficiently.
So, to sum up my entire journey, I would like to say that I am grateful to the entire family of Linde Bangladesh Limited for taking care of me in the best possible way. For the entire sector to shine, Linde Bangladesh Limited's efficiency practice should be followed by every company. Furthermore, the factors we identified, such as FDI, GDP and population, are directly relevant to gas demand, showing that demand will continue to increase and follow in the footsteps of the government's Linde Bangladesh Limited.
Demand of gas and FDI
Demand of Gas and the Population of Bangladesh
According to my model, the relationship between gas demand and the population of Bangladesh is the strongest. As we know, population is the main reason for the increase in demand. So, as the standard of living and lifestyle evolves, the demand increases in parallel with the development of the country.
So to consider population as a benchmark, I have taken the data/consensus of population (in crore) from Govt. And it is safe to say that for the increase in the population of Bangladesh, the increase in the demand for gas is directly proportional.
Findings and Analysis of the Study
Descriptive Statistics
Model Summary
Correlations
Supporting Charts
From the scatter charts that plot our data above, we learn the relationship between the demand for gas and the independent variables GDP, FDI and the population of Bangladesh.
SWOT Analysis of Linde Bangladesh Limited
It can therefore be a weakness not to have many customers, as they have to satisfy the small number of customers that match their client criteria. Moreover, according to the recent news about the demerger of their commodity business and 420% dividend declared at the general meeting, we can assume that their profits have decreased compared to the previous years, where they have to increase their debt financing to pay off their shareholders . . As there is a growing demand for health gases, an emphasis on sustainable solutions and a focus on renewable energy, Linde Bangladesh's offering matches our country's goals and vision.
They can provide renewable energy such as hydrogen, they can focus on sustainable solutions to reduce carbon footprint, and provide medical-grade gases to satisfy the needs of the customers. The change in Management will change one way or the other and the time this new staff takes to adapt to our country may pose some kind of threat to the company.
Financial Analysis of Linde Bangladesh Limited
It indicates a company's ability to generate profit through its day-to-day operations and activities. It indicates the relationship between a stock's price and its earnings per share. The efficiency of using or the effectiveness of using the company's assets in generating revenue.
From the graphs of the net profit margin ratio and working capital turnover ratios, we can see that according to the rule of thumb, a net profit margin of 10% is considered average and anything equal to or greater than 20% is considered good. The graph for working capital turnover indicates that working capital turnover is more than 1.5 in all five years. Since we know that any value between 1.5 and 2 is considered good, Linde Bangladesh Limited has a good working capital turnover ratio, which means that they are getting good returns by using their free cash flows, i.e. working capital. Since it was my first work experience, I learned a lot from my superiors, colleagues and other respectable members of the company.
Analyzing all the data, I can summarize that Linde Bangladesh Limited is tackling its challenges by proper utilization of its assets and by properly managing its debt. As the prices of raw materials are increasing, the dividend declared by the company is lower than in the previous period. This suggests that in the future it will be even more difficult to do business and govern.
Due to the emerging issues of Russia-Ukraine war, inflation, dollar crisis and upcoming elections, Bangladesh is in a precarious position and the result is irregular price rise and uncontrollable way of doing business. This report will help readers better understand the prospects of the industrial gas industry. Retrieved from https://www.adb.org/projects/documents/ban-natural-gas-infrastructure-and-efficiency-improvement-rrp.
Retrieved from https://www.tbsnews.net/bangladesh/energy/we-have-gas-reserve-10-years-only-then-what-405470. Retrieved from https://www.thedailystar.net/environment/natural-resources/energy/news/gas-supply-floating-lng-terminals-restored-after-9-days-3325866.
