Second generation takes the helm at Crown Cement

Crown Cement PLC, one of Bangladesh's leading cement manufacturers, is ushering in a new phase of leadership as members of the second generation from its sponsor families step into board-level roles, marking a significant transition in the company's long-term governance and succession planning.

TBS Infograph

According to the company's annual report for FY25, Crown Cement has appointed two second-generation directors to its board – Solaiman Kabir, son of Vice Chairman Alamgir Kabir, and Mushsharat Mahajabin, daughter of sponsor director and Additional Managing Director Mizanur Rahman Mollah.

The appointments, approved by the board, will be placed before shareholders for ratification at the annual general meeting scheduled for 22 December.

The move follows recent changes in shareholding within the sponsor families, undertaken to meet regulatory requirements for directorship. 

In April this year, Alamgir Kabir transferred 29.70 lakh shares from his personal holding to his son Solaiman Kabir, while Mizanur Rahman Mollah gifted 30 lakh shares to his daughter Mushsharat Mahajabin through transactions on the Dhaka Stock Exchange. 

With Crown Cement's paid-up capital at Tk148.50 crore and total outstanding shares standing at 14.85 crore, an individual must hold at least 2% – equivalent to 29.70 lakh shares – to qualify for a board position.

In its annual report, Crown Cement said the newly inducted directors bring a "new-generation perspective" to the board, with a focus on corporate strategy, governance, sustainability, digital adoption and operational efficiency. 

The company views their inclusion as an important step toward ensuring leadership continuity while aligning the business with changing market conditions and long-term growth priorities.

Beyond the immediate board appointments, Crown Cement has also outlined a wider pipeline of potential future leaders from sponsor families. These include Salehin Mushfique Sadaf, son of Chairman Jahangir Alam; Atiq Murshed and Mehnaz Mehjibin, children of sponsor shareholder and Managing Director Mollah Mohammad Manju; and Saiham Sadik Pial, son of sponsor director Almas Shimul.

Earlier this year, Salehin Sadaf received 15 lakh shares, Atiq Murshed 30 lakh shares, and Saiham Pial 20 lakh shares as gifts from their respective fathers, indicating a gradual redistribution of ownership ahead of possible leadership roles.

Founded in 1994, Crown Cement began commercial operations in 2000 with a daily production capacity of just 600 tonnes. Over the past two decades, the company has expanded rapidly, emerging as one of the largest cement producers in the country. 

After listing on the stock exchanges in 2011, Crown Cement continued to scale up its operations and now boasts a total daily production capacity of 19,040 tonnes, equivalent to around 5.7 million tonnes annually.

However, the leadership transition comes at a time when the company is navigating financial and industry-wide challenges. 

In the 2024-25 fiscal year, Crown Cement's net profit declined by 33% year-on-year to Tk67 crore, despite an 18% increase in revenue to Tk3,764 crore. 

The company attributed the earnings pressure to higher production costs, rising interest expenses linked to long-term expansion loans, and additional depreciation following the commissioning of its sixth production unit.

Higher electricity tariffs also weighed on margins, while increased spending on advertising and manpower to strengthen market presence further tightened profitability. 

In its annual report, Crown Cement noted that the cement industry as a whole continues to face headwinds from geopolitical uncertainties, subdued construction demand and weak pricing, factors that have constrained profitability across the sector.

Despite these challenges, the board has recommended a 21% cash dividend for FY25, signalling confidence in the company's fundamentals and its commitment to shareholder returns. 

Early signs of recovery are also visible. In the July-September quarter of FY26, Crown Cement reported a 25% year-on-year jump in revenue to Tk878.64 crore, while net profit rose sharply by 77% to Tk6.67 crore.

The company's shares closed at Tk46.50 on the Dhaka Stock Exchange today.

Market participants see the entry of second-generation directors as a pivotal moment for Crown Cement, blending legacy experience with fresh perspectives at a time when the company must balance expansion, cost pressures and shifting market dynamics.