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Adex group
BUSINESS REPORT

Mohammad Shoaib
Deputy Manager

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Although Bangladesh has made considerable development in various sectors over the last
few years, last years developments were marred by some unfortunate string of events.
The political instability that had and has plagued the country had investors hesitant of
investing in new projects. Thus the growth was slow in comparison to previous years which have
affected us and will continue to do so until the foreseeable future.
At the same time, new competitors along with the old ones have beaten us on price while
compromising in quality. This can be offset by investing more in creating better marketing image
of our company. Initially the cost will be high but its after effect will be more beneficial.
Energypacs aggressive marketing drive is a very good example. General mass seems to have
more knowledge of Energypac than of Adex Corporation Ltd, although we are older and
qualified in the market.
The collapse of Rana plaza in Savar put a negative impact not only on garments sector but
its ripple has echoed into other sectors of the country too. This meant that there was almost a
negative growth on the garments and industrial sector. This unfortunate event has forced the
owners and new investors to think more rationally when dealing with the electrical equipments in
their premises. Therefore, I believe, existing industries will be reviewing their electrical
generation and distribution equipments. We can use this opportunity to boost sales and use the
funds generated to put us on top of Energypacs general image.
The 30 years experiences Adex Group has gained has put it in a very strong foot in bringing a
change in the way people perceive the electrical sector in Bangladesh and in the near future push
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beyond the boundaries of the country. The time is ripe for the company to launch products with
the Adex Brand logo.
Favorable trends in our environment creating opportunities:
Energy efficiency
Energy Efficiency, meaning doing more with less, is an essential part of the solution to the
global energy challenge. Alongside traditional passive energy efficiency technologies such as
building insulation and energy-efficient equipments, active energy efficiency has a big role to
play. Active energy efficiency means optimizing a commercial & industrial buildings
performance and usage through the use of building automation. As Adex Group has previous
experience in the sector, it is well placed to take advantage.
Accelerated growth in new economies
In economic terms, it means that new economies are the drivers of global growth and this
trend should continue for years to come. We are part of a country, which according to research is
destined to be a developed country by 2030. Hence, more development means more power and
Adex has strong footing in this sector.
Cities, at the heart of the sustainability battle
Dhaka along with other cities needs to become smarter: more efficient, more liveable and
more sustainable. This means:
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Improving the efficiency of the citys underlying urban infrastructures (electricity grid,
gas distribution system, water distribution system, public transportation systems, public
services, commercial buildings, hospitals, homes, etc);
Becoming a better place to live, work and play;
Reducing its environmental impact lower carbon footprint, urban regeneration, parks
and trees, etc.
Our strategy
Influence the countrys new energy challenges
The countrys energy challenges are many: growth in energy demand, energy price
increases, scarcity of natural resources, CO
2
emissions reduction requirements, integration of
unpredictable and intermittent renewable sources of energy, increases in peaks of consumption
and others. We have a wide range of products and solutions that will provide managers of
industrial plants, data centers, infrastructure, homes and buildings with significant levels of
energy efficiency and savings.
Build two complementary business models: Products and Solutions
Products and solutions are different and complementary business models and we aim to
deliver profitable growth in both We are also focused on growing our solutions business by
increasing our service revenues and reinforcing project execution. We have developed reference
architectures for solutions in targeted end-markets in order to facilitate smooth integration of our
products and speed up project design.
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Products allow us to continue to achieve scale and pricing power in our end-markets, while
providing differentiation through technologies that can be combined and integrated. The
distinctive and ergonomic design attributes of our products also create new competitive
advantages.
Solutions will allow us to generate additional growth and profits, lower capital intensity and
help reduce cyclicality. They also provide significant opportunities for dialogue with our
customers, which help inform our quest for continuous innovation.
Invest in profitable and responsible growth while driving efficiency
We believe in the high long-term growth potential of our business and we continuously
invest to drive that growth. This investment is focused on sustained spending in research and
development, as well as on growing our commercial presence and skills, especially in the fields
of high value-added technologies and services.
In addition to the investments we make to foster growth, driving efficiency at all levels of our
Company is an equally important focus of the Group.

0
1000
2000
3000
2005 2006 2007 2008 2009 2010
Business growth
Growth
in Million
Taka
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Our competitive strengths
Technological leadership
We believe we have best-in-class technology in energy
management to meet growing customer needs and challenges.
Additionally, through an ongoing dialogue with our customers,
we are able to maintain our very high standards of quality and
to anticipate the innovation that will help drive our future
growth. Thanks to technological leadership, our brand is among
the most recognized in our industry.
Multiple channels of access to a broad and diffuse user
base
Our diverse market access channels, which require only
minor capital investment, help to ensure that we are not
dependent on a limited number of large customers.
A balanced presence with a strong ability to adapt to local needs
Our presence in many diverse markets ensures that we understand local needs, which assists
us to serve our customers with dedicated products and solutions adapted to local requirements.


Customer satisfaction
Customer satisfaction is an
integral part of Adex Corporations
growth strategy. Every contact with
Adex Corporation should be a
positive experience that makes all
customers, no matter who they are
or where they are located, feel
understood and satisfied. This
commitment is an important
differentiating factor, and customer
satisfaction surveys are carried out
frequently and employees attend
related training programs.
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A R&D organization
Our pursuance of perfection has led to a very strong R&D department. The central R&D
function:
Coordinates innovation on the common technology platforms of the 5 Group businesses;
Defines and oversees the implementation of tools and design methods, with a particular
focus on systems engineering.
This has ensured our leading position in the private sector.
Risk Factors
Operates in competitive and cyclical markets
The Groups wide presence exposes us to many economic and political risks. These include
risks arising from social unrest (particularly strikes and walk-outs), political instability and
unforeseen regulatory changes. All of these risks may have an adverse effect on the Groups
operations, results or financial position.
Adex Group has implemented procedures designed to protect it as far as possible from these
risks, which are generally beyond our control, and to manage them as effectively as possible.



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The growth and success of the Groups products depend on our ability to develop new
products and solutions and adapt to market and customer needs

The Groups business growth depends on its ability to develop, deepen and enhance customer
relationships. The Group must constantly offer customers innovative solutions built around high-
quality products and solutions incorporating leading-edge technologies that are closely tailored
to customer needs and expectations.
The Group is dependent upon hiring and retaining highly qualified management
and technical personnel
Future success depends in part on the Groups ability to hire, assimilate and retain engineers,
sales people and other qualified personnel.























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Future Business Strategy:

Increase Customers Base:
This initiative will aim at further improving the performance of its business models in order
to be a leader in products and in solutions, and to adapt the different dimensions of the customers
and partners experience with Adex when they interact with the Group.
We are already starting a manufacturing unit, increasing our manufacturing capability. As a result
we need to increase our sales by expanding our customer base. At the same time, we should venture
more into the public sector to properly utilize our new manufacturing unit.
Adex Family:
The target of this transformation is to create a culture and an environment for the Groups
employees development and performance.
Engaging leaders: train leaders
Engaged individuals: support employee development via training, empowerment
and cross-business mobility.
Engaging workplace: step-up collaboration & communities, develop the Adex Way.
Connect Everywhere:
This initiative is designed to identify key investment areas and new opportunities in new areas to be a
leader. The initiative will continue to support the long term growth potential.
We should focus on launching products with our Brand logo. The products can be from circuit
breakers, 11/33kV CT & PTs, AVRs, Cast Resin Transfomers, Busbar. As we have the technical
expertise, with proper marketing and branding, these products can become a big hit with the customers.
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This is because; a lot of companies do want local products but due to lack of it are forced to venture out of
the country. Bangladesh is growing. The generation of the future wants nationalized products and I
believe we are in a strong position to cater to the needs of the future.
My position as a ADEXIAN
As a member of Adex Group, I feel proud to call myself ADEXIAN. I want to be part of the
successful revolution in business explosion that the company has been experiencing for the last
5 years and will continue to do so in the next 10 years. Hopefully along the way I will gain a lot
of expertise and will be able to nurture and nourish the dream of our Honorable Chairman Engr.
Ali Azam by being a valuable team member of the Adex family.
I want to enjoy that moment when the general mass of this country will know Adex Group better
than the Energypacs and others. I want to see the day in the next 10 years when Adex Group will
be a MNC and will have a strong footing in the Southeast Asia region and may be, venture into
the European Market.
Impossible is Nothing and Nothing is Impossible