Mr. Amer Yusuf Initiated Papertech Industries Ltd. as One Of The Pioneers In The Paper Manufacturing Industry Of Bangladesh. Get To Know More About His Journey As He Shares Challenges And The Potential Of The Industry, Youths, Startups, Morals And His Vision.
Q. LET’S START WITH A BRIEF INTRODUCTION OF YOURS. TELL US ABOUT YOUR ACADEMIC BACKGROUND AND WHERE YOU WERE BORN AND BROUGHT UP.
Despite the fact that my ancestors are from Faridpur, I was born and raised in Dhaka. My family has had strong ties to Faridpur for many generations. I graduated from St. Joseph High School and went to Notre Dame College to complete my HSC. After that, I completed my bachelor’s degree at IUB. I eventually started my own business.
Q. SHARE WITH US YOUR JOURNEY INTO THE WORLD OF ENTREPRENEURSHIP AND HOW PAPERTECH BEGAN.
Our family was not directly involved in business; rather, my forefathers were heavily involved in politics for several generations. My family had been in the business from my father’s generation. In Faridpur, we ran a jute mill, which my family has owned for a long time. Nonetheless, I was adamant from the start that I would pursue my own path separate from my family’s business. I wanted to build something that upheld Islamic morals and values, so I avoided using interest-bearing financing instruments. As a result, I began on a small scale. Imran Mamoon, my business partner, has been with me since the beginning. He is the current Chairman of the KAI Group.
After our small business flourished, we aspired to start something more extensive. We amassed adequate capital for our upcoming venture and decided to branch out in the paper industry. However, when we first started in 2008, we knew very little about the industry. The majority of people advised us to start with brown packaging paper. However, we quickly realized that packaging papers were not profitable enough at the time, and printing papers were in higher demand.
In those days, the paper industry lacked sufficient expertise and talent. Technologically, we found ourselves in a challenging position. However, since we were here for the long haul, we decided to take on the challenge and went ahead with the printing paper project. We had to seek additional funding for our project as it required a large sum of money. We agreed to go to Islamic financing on fair terms.
The next challenge was to source the machinery. The majority of businesses at the time were importing used machines from Europe. Despite being of superior quality, those still required rigorous maintenance. The spare parts were difficult to come by and were costly. As a result, we decided to take a risk and purchase new Chinese machines. Our well-wishers were taken aback by our decision. We reasoned that the Chinese machines were easier to install and maintain, and spare parts were readily available.
We had to seek production advice from others because we were unfamiliar with the industry. Despite meeting many people, we were unable to obtain additional guidance. We eventually came across an experienced person, Mr. Sadrul Alam, who was technically sound and seemed to be better than most others during our expedition. We decided to hire him and start making printing paper with him.
We were rewarded for our perseverance, and we ensured top-notch, high-quality production. Back then, we produced better papers than many other well-known companies. Papertech, in my opinion, played a pivotal role in introducing high-quality papers to Bangladesh. The country used to import a large number of papers, but that number has since been significantly reduced. Even though imported papers are good, there is a strong demand for Bangladesh-made papers. We are constantly striving to improve quality and revamp production.
Q. WHAT INSPIRED YOU TO BE SO AGILE AND HARDWORKING THROUGHOUT YOUR ENTREPRENEURIAL JOURNEY?
Because of my family’s business history, I’ve always wanted to work in the business world. However, getting into professional service also crossed my mind.
When I Went To Consult With My Father, He Said, “Yes, Of Course. You’ve Finished Your Studies. You’re Free To Pursue Your Goals, And You’ve My Full Approval. However, Keep In Mind That If You Start Your Own Company, You’ll Always Have The Opportunity To Give Back To The Community. Therefore, I Would Want You To Start Your Own Business. Remember, It Is Also Your Responsibility To Give Back To The Society”.
For me, what he said was highly significant, and it left a lasting impression on me.
As my family had a long history of charitable contributions and a political heritage, people would often come to us asking for help with medical treatment and other needs. We did everything we could to accommodate them, whether it was with financial assistance or by sending for competent people to solve their problems. Hence, the nature of giving and philanthropy was already ingrained in me. That’s why my father’s message was very clear to me. But where do I get the money to start my company? At that point, I put all my faith on the Almighty. I reasoned that if I start small, keeping good faith, Allah’s aid will come.
Along this long journey with Papertech, I’m still learning new things. Maintaining a high level of quality and consistency on a daily basis is difficult. There are several internal challenges like any other government or private enterprise, such as management challenges and, of course, HR issues. Now the question is how well you’re handling things. I believe we are just getting started in terms of professional management, profitability, and everything else. Over the years, dealing with and overcoming challenges has given me confidence, Alhamdulillah. I’ve always wanted to create something of my own and see it through.
Q. WHAT OPPORTUNITIES DO YOU SEE IN THE PAPER INDUSTRY? HOW WOULD YOU COMPARE WITH OTHER COUNTRIES?
The paper industry is segmented into numerous categories. There is printing paper along with paperboard, tissue paper, craft paper, liner paper, other different packaging paper, etc. There are also cards, duplex boards, and high-quality packaging boards, which are also considered as paper. Now, in terms of printing paper, I wouldn’t say Bangladesh has a lot of room for growth, but there’s a lot of promise in other paper segments. Packaging papers are in high demand right now, thanks to the rapid growth of E-commerce and online deliveries.
There are also duplex boards, which are also a different type of paper. This segment is mostly imported. Although some companies produce it in Bangladesh, the quality isn’t up to par. There is market demand, but the funding requirements for this segment are high.
I believe Bangladesh has a lot of room for improvement in the printing and packaging sector, and we’re moving in the right direction. It is a capital-intensive industry that necessitates significant investment. Even though this industry is still growing, we have a lot of exciting opportunities ahead of us in the coming years.
Q. WHAT SORT OF INNOVATION ARE YOU PLANNING TO INTRODUCE TO INCREASE THE EFFICIENCY OF THE INDUSTRY AND OPERATIONS?
When the paper industry emerged in Bangladesh, it was predominantly equipped with secondhand semi-automatic or manual machines. As a result, the product’s quality was not in alignment with the imported papers. However, in recent times, as the industry is growing and maturing, owners are increasingly opting for higher-quality machines with greater automation. For example, in order to achieve higher-quality paper in the finishing section, we now need fewer human resources and more automated machines.
Simultaneously, we’ll have significantly less waste once we develop better processes and have better machinery. At the same time, efficiency will improve. We are constantly on the lookout for new technologies that will allow us to be more environmentally conscious.
All Of The Pulp We Purchase Is Grown In A Sustainable Manner. It’s Not Like We’re Chopping Down Trees At Random To Make Pulp. They Lease Forests From Governments Worldwide, And They Re-Cultivate Whatever Trees They Cut Down.
There is also a considerable scope in recycled paper. Ink consumption is reduced when using higher-quality paper. Then there’s the energy consumption. Many paper machines are constructed in such a way as to reduce energy consumption. As a result, we are less reliant on electricity and can lower our power consumption. All of this is causing us to become more efficient every day. Water is used extensively in the paper industry. Technology has progressed to the point where we can reuse water indefinitely, lowering costs.
We must remember that paper is a necessary commodity. The need for papers varies by industry, but they are always required. Now we’re attempting to recycle the entire process in order to reduce waste. This reflects our efforts to maintain a good balance of efficiency, productivity, and environmental stewardship. The government has set strict guidelines, which are beneficial to both the country and the environment in the long run. We want to work together to realize that vision and make the world a better place to live.
Q. TELL US ABOUT THE CSR AND SUSTAINABILITY EFFORTS THAT PAPERTECH HAS UNDERTAKEN.
As I mentioned before, my entrepreneurial journey began with my father’s inspiration to give back to society. We take our CSR projects with the same principle in mind. There are many workers involved with us who are not financially secured but might require emergency funds for medical treatment, marriage or any other reason. Our first priority is to provide for our people so that everyone at Papertech is taken care of. Then, of course, we try to look after the communities in which our paper mills are situated. Apart from that, we regularly contribute to a variety of causes, including but not limited to medical, shelter, food, and clothing. We try to provide all these things and do it in a way prescribed in the Hadith and Sunnah which includes Zakat also.
Q. WHAT CHALLENGES DO YOU FACE IN THE PAPER MANUFACTURING INDUSTRY?
Like any other industry, there are a number of obstacles to overcome.
Particularly, For The Paper Industry, There Is No Educational Institution That Teaches The Process Of Papermaking. Even If They Do, It Is Insufficient. To Supply This Industry With Skilled Manpower, We’ll Need At Least Some Vocational Training Or A Bachelor’s Degree In Papermaking.
Simultaneously, human resources, particularly skilled ones, are in short supply these days. The difficulties we face in this regard is astounding. Bangladesh is doing extremely well in the lower tiers of society because overall income has increased, and people now have multiple sources of income. When we were kids, we used to see people struggling for food & shelter, but Alhamdulillah, the poverty level has been reduced, and people in the suburbs and villages have a lot of work in their hands. So, these days, getting labor for the paper industry is not an easy task. On top of that, particularly the paper industry lacks skilled labor.
Moreover, in Bangladesh, corporate culture is still in its infancy. As far as corporate governance is concerned, very few companies are doing well, but the number is still very low. Among the many reasons behind it, I believe that owners and mid-level management must bear the brunt of the blame. It’s not that they aren’t working; rather, they are not sure how to work or structure the management. They are lacking in interpersonal skills as well as sufficient knowledge of their own subjects. So, if I add it all up, we are still in the early stages of development and have a long way to go.
Lastly, the Bangladeshi market for white writing printing papers is currently saturated. A large number of newcomers are arriving, and the number of old factories is growing. As a result, the paper industry is currently facing a lot of competition. This competition is good because customers benefit from it. However, from the standpoint of the industry, this is a challenge that we accept and appreciate because it motivates us to set higher goals and work harder.
Q. WHAT CHANGES ARE NEW TECHNOLOGIES BRINGING IN YOUR INDUSTRY, AND HOW ADAPTIVE DO YOU THINK OUR LOCAL EMPLOYEES ARE TO THE TECHNOLOGICAL CHANGES?
Although Bangladeshis are accustomed to manually or semi-manually operated machines, there are new technologies automating the process. Keep in mind, wherever there is automation, there is specialty involved. It’s nearly impossible to survive otherwise.
When purchasing new technologies, investment is not the only thing to consider. The primary concern with implementing these technologies is that we are reliant on the machine supplier for technical support. There are a lot of electromechanical components, and everything is now very computerized. It is no longer the case that only a mechanical engineer can solve any machine-related problem. You’ll also require the services of an electrical engineer. So, we’re trying to adapt to these challenges and increase our productivity.
Ultimately, it’s a marathon, not a sprint. The main idea is to keep up with technology on a regular basis. I wouldn’t say we’ve come a long way already. Yes, we keep an eye out for these things and are funneling our efforts in that direction. For instance, we now have computerized simple wrapping machines and simple cutting machines, resulting in increased efficiency. We are bringing in people from other countries and training our own people. All of these efforts help to raise the standard. However, it is a challenge, and we are addressing it.
Q. WHAT IS YOUR OPINION ON THE EMERGING NEW TALENTS OF BANGLADESH WHO ARE COMING INTO ENTREPRENEURSHIP AND CREATING THEIR NEW VENTURE?
The new generation, in my opinion, is very gutsy. They are confident in their abilities and are not afraid to try new things. It’s changing Bangladesh’s entrepreneurial landscape. People are mostly getting into startups. It’s a completely different ballgame from traditional businesses because the money is raised through investments rather than bank loans. This, too, is attracting foreign investment. Bangladesh is now going global in this regard. Once anyone initiates a startup, one should start with this global, multiregional perspective. Otherwise, the investments won’t come.
In contrast, the paper industry or any other manufacturing industry in Bangladesh is typically local. However, they play an important role as well. People will always require manufactured goods, so the industrial business will continue to exist and thrive in their arena. These industry owners in Bangladesh are very busy with production. They also have reservations about the marketing. But this is a very crucial point if you want to make money. Newcomers are more centered on distribution and marketing. I strongly believe that when these individuals enter the manufacturing sector, they will perform better.
Traditional industry owners would take out bank loans and work for the banks in the sense that they would be responsible for repaying the banks. When you start taking money from investors, however, the dynamics of the accountability shifts. Now both the investor and the investee are more cautious with the fund. It automatically motivates you to be more efficient and it drives you towards effective marketing. Otherwise, you won’t be able to generate the expected ROI. As a result, in order to survive, people must look into all corners and aspects of the business.
I strongly believe that accountability will improve in this process. Most importantly, the entrepreneurs’ perspective will shift. They will be bound to repay the investors. Logically they have to consider profitability. This, in my opinion, is very good for the overall business-standard.
I believe this will also have a positive impact on our education sector as well. Because this transformation will require a lot of educated and skilled manpower. It is not that our rate of education is lower, but the quality of education needs to improve. So, I think these changes will bring about developments in the education sector also.
Q. IN YOUR OPINION, WHAT IS THE IMPORTANCE OF MORALS AND ETHICS IN BUSINESS, ENTREPRENEURSHIP, AND EVEN IN THE CORPORATE CAREER?
Morality And Ethics Are Required In Every Aspect Of Our Lives. Because If We Lack Principle, It Will Eventually Catch Up With Us. The Sooner We Realize This, The Better.
You must be ethically correct and morally obligated if you want to be successful. It’s important to remember that nature has a way of coming back to us. Nothing is hidden nowadays, especially in the age of social media. You will not be able to sustain yourself if you are not ethical or moral. You may survive and even thrive in your generation, but your second generation will be in serious trouble. As a result, in one way or another you will fail.
Q. What are the other projects you are currently working on, and what is your long-term goal?
To be honest, I’m only working on my paper presently, and we’re concentrating on expanding our business. Our expansion strategy focuses not only on financial growth but also on long-term sustainability.
Specialization, in my opinion, is necessary to survive in this competitive market. Previously, a group of companies could branch out into different industries. They’d be in cement, paper, textile, and a variety of other industries. However, as the level of competition rises, so does the level of efficiency. To keep up with the competition, you must be an expert in your field.
Now speaking of my goal, my objective is to become sustainable. Papertech should be an organization where people are being provided. We are like a family association. Our stakeholders and we have a healthy environment where we engage in business. Everyone in this ecosystem should be taken care of. And if that is done, money is just a logical consequence.
In the long run, I want to be happy. Happiness and peace of mind are very important. And if we go for a balanced approach, I think we can achieve all of these things.
