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Capital Budgeting Practice in Bd

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Submitted By Ajafor
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Executive Summary
Reckitt Benckiser Bangladesh Ltd is a leading player in the FMCG market of Bangladesh with a focus on Health, Hygiene & Home. Making differencing from conventional playing company in Bangladesh Reckitt Benckiser has strong intention for modern developed capital budgeting technique in evaluating their potential projects especially in large R&D projects. The company mainly uses IRR. It uses sophisticated methods to project future cash flows. The company also uses scenario analysis to incorporate risk and for some very complex projects, it uses simulation analysis with the help of parent company in UK.
However, Reckitt Benckiser Bangladesh Ltd is a well established company and it does not take large projects very often. Those capital budgeting techniques are normally used in evaluating large projects and in case of acquisition of an existing company.

Company Overview

Company Profile
Reckitt Benckiser is a world leader in FMCG household, health and personal care. In Bangladesh it has started its journey as Reckitt Benckiser (Bangladesh) Ltd. The Company was listed in DSE in 1986 and in CSE in 1995 as a pharmaceuticals and chemical company.
Currently, Reckitt Benckiser (Bangladesh) Ltd is a leading player in the FMCG market of Bangladesh with a focus on Health, Hygiene & Home. RB is involved in the business of manufacturing and marketing Household, Toiletries and Pharmaceuticals items. The company’s product array includes brands like Disprin, Dettol, Harpic, Mortein, Moov, Veet etc.
Its strong achievement and entrepreneurial focused culture is renowned for giving employees unparalleled ownership of projects and decisions and where international mobility is encouraged. RB's an organization where driven people thrive.

Financial Highlights
Key Revenue Drivers & Company Insight
Reckitt Benckiser (Bangladesh) Ltd’s almost 96 percent

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