‘SMC Enterprise is proof that profit and compliance can go hand in hand’
SMC Enterprise stands out as a unique entity, demonstrating that profitability can be achieved while maintaining strict compliance and delivering top-quality products. We have reached an annual turnover of Tk2,000 crore and continue to achieve double-digit growth, said Sayef Nasir, managing director of SMC Enterprise, in an interview with The Business Standard's Foisal Ahmed
Established in 2014, SMC Enterprise is the commercial arm of the SMC (Social Marketing Company), which has been promoting welfare initiatives for five decades. This year marks SMC's 50th anniversary as a welfare organisation, celebrating a journey of significant success.
Nasir discussed SMC's journey towards self-reliance, highlighting its transition from donor dependency to a profitable venture. He also shared insights into the company's best-selling products, market challenges and plans for future growth.
Could you share SMC's achievements over the past 50 years?
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Fifty years ago, in 1975, SMC started its social marketing programme in Bangladesh. Initially, it began with a small family planning social marketing programme, a modest operation. We received technical and financial support from a few foreign donor agencies.
At the time, the country faced a significant problem – a high rate of childbirth. The challenge was to bring it down to a reasonable level.
With much effort, there has been significant improvement in this area, and SMC is a major contributor. Currently, SMC's network provides 50% of all family planning-related services.
Later, in the 1980s, diarrhoea emerged as a pandemic. To address this problem, SMC made oral saline widely accessible. We organised efforts to ensure that oral saline was within people's reach.
During our childhood, saline was often made at home with a handful of molasses and a pinch of salt, as demonstrated in TV advertisements. Reaching saline to people was a challenge back then. In collaboration with WHO and Icddr,b, SMC introduced a disposable consumer pack of oral saline.
Although it is a pharmaceutical product, it is now widely available in grocery shops, ensuring nationwide accessibility. This is a major milestone for SMC.
What about SMC Enterprise? How is it faring?
We started our commercial venture in 2014. Since then, SMC Enterprise has been a very successful initiative. Currently, we have 4,500 employees and making double-digit growth.
Does SMC still depend on foreign aid?
What started out as a small operation, dependent on foreign aid, has now become largely self-reliant. We can run things on our own.
Over 50 years, we have grown into a significant organisation that supports over 15,000 service providers working with mothers and children and in child development. We now sustain these activities with our own resources.
Our commercial operations fund welfare activities. Any remaining surplus is reinvested in the business.
That said, SMC also conducts a few partnership programmes with foreign donor organisations.
What is special about SMC Enterprise?
Actually, SMC Enterprise is a unique entity because we have proved that profit can be achieved in this country by strictly adhering to compliance and ensuring top-quality products.
Our strength lies in surviving by complying with all laws and regulations while competing with major players in the consumer sector.
In essence, I will say, we have three pillars — we are very compliant, uncompromising in quality and in line with these principles, we are making a profit.
How can you make a decent profit while paying full taxes?
First, I would credit our goodwill. Second, we have a deep understanding of what our customers want and need.
What are SMC's best-selling products?
We have several successful brands. Five of our brands achieve annual turnovers exceeding Tk100 crore.
If we highlight revolutionary products, I would start with Orsaline. Next, the Joya sanitary napkin has gained wide acceptance, particularly in rural areas. Then, there are SMC Plus electrolyte drinks, Smile baby diapers and Taste Me instant soft drink powder.
How many products does SMC currently have in the market?
SMC currently has over 30 products in the market, and we are planning to introduce several new consumer products.
Has SMC experienced any failures?
Although SMC has many success stories, we have had some failures as well.
If you work, there will always be successes and failures. Perhaps you can avoid failure if you do not do anything. For SMC, the failure rate is only 5%, which is negligible.
One example is our attempt to introduce drinking water to the market, which did not succeed. We eventually discontinued the product. Similarly, there were a few other launches that did not perform well.
