In a conversation with Asif Tarafdar, the CEO of Grameenphone Ltd, Michael Foley divulges on what it takes to stay ahead in the ever-evolving telecom industry, the delights of working in Bangladesh and the things that keep him awake at night. 

The Telecom industry is a dynamic and rapidly evolving sector, what challenges does this pose? What are the strategies that help you to ensure the ship is guided in the right direction?
That’s a wonderful question and a great topic to start the conversation because our industry and the world is becoming much more complicated. In the past, in telecom, the only real evolution was in technology, and you could predict the path of progression. Now, the transformation has become multidimensional; every other aspect of the sector is evolving, including the regulatory environment and international competition. Concurrently, new players are entering the market like OTTs (Over The TOP), cross-platform messaging and VoIP platforms like WhatsApp and Viber. Most importantly, consumer behaviour and preferences are constantly evolving.
Consequently, the future is no longer predictable; therefore, we have to allow ourselves to perceive/predict and react, which is not easy for big companies. To make that happen, we have had to change the culture of not just Grameenphone fundamentally, but the entire Telenor Group over the last four years to become much more supple. It allowed us to adapt quickly and look for opportunities where otherwise we would not have searched before. The process stipulates making the organization leaner. It also involves removing layers of management, automating and replacing outdated systems. Instead of using massive system developments and releases once every half year, or every year, we now have a customer-facing tool, MyGP, which we do releases every two weeks. Therefore, we moved to a completely different operation from where we were before.
So, the answer to dealing with an uncertain future is to give yourself the tools to be much more flexible. And we call that “Agile”; we have to react quickly. But we also have to predict and move fast while being in touch with the market by using tools like Big Data and AI.

How has GrameenPhone incorporated the use of Big data and AI in its operations?
We use Big Data, Machine learning, and some AI to design promotions. They help us to understand the consumers by Upazilas, or even smaller groups and design promotions accordingly. Grameenphone can modify the offers that consumers get, based on their usage almost in real-time.
We are also using more and more of these tools for management of networks because they are becoming very complex. Modern networking technologies require incredibly sophisticated tools; we augment human intelligence and effort with these advanced technologies.

Your consumer base is incredibly large and diverse, does that make predicting even more challenging?
We have roughly 76 million customers right now, and that scale allows us to do very significant analysis. For example, GP serves up 400 million minutes of voice services per day. In every one of those calls, there are multiple interactions. These interactions allow us to create models of how our customers and the economy behaves, which eventually enables us to start crafting services and products that meet the needs of clients. And that the ability of computing power today to crunch this amount of is such that the scale of it gives us an advantage rather than a deficit. 

I usually tend to be very deeply hands-on, involved in every aspect of the business. From working on promotions to setting up towers in various districts, I prefer to be engaged in every operation.

You have previously worked as CEO of Telenor Pakistan and Bulgaria, are there any specific challenges that you had to overcome in Bangladesh?
I’ve previously worked in markets similar to Bangladesh, including Nigeria, Kenya and Tanzania. Like any other market, Bangladesh has some specific challenges. For us (Telenor Group), Bangladesh has been one of the most successful ventures, and we’ve been here for more than two decades. It is the cornerstone of our activities in Asia.
For Bangladesh, some obstacles are very distinctive, for example, I’ve been here for 36 months, and we have already had three cyclones. These are obstacles that you don’t have in other parts of the world. But we have become good at dealing with these things. So eventually, we get good at dealing with the challenges that exist in specific markets.

Do you have to make any adjustments to your style of leadership depending on the country you are working?
Yes! I usually tend to be very deeply hands-on, involved in every aspect of the business. From working on promotions to setting up towers in various districts, I prefer to be engaged in every operation. However, this business has become so massive and complex that it doesn’t allow me to do that anymore. Likewise, our corporate strategy of “Red way of work” and “Agile” makes the leader play a different role. So the leader plays two particular roles now; it includes setting clear objectives and managing the results closely.
And in the middle, you let people within broad guidelines find their way. My job as a leader is to set those very clear objectives and to manage the results at the end, and then facilitate the way they do things, but let people find their way.
George Patton, the American general in the Second World War, said to let people do their job the way they want to, they might surprise you with the results. And this is what happens in GP, we have a fantastic team of people, the best in Bangladesh work for us, and they do amazing things.
My leadership team and I do not need to tell them how to do something. We only explicate our expectations in the end.
There are some exercises where I’m on the team but not leading. My office doesn’t have a big wall around it and has a desk like everybody else, and anyone can walk up to me. I am also part of some business teams only to provide guidance rather than being the final decision-maker.

Are you satisfied with the rate of 4G adaptation among Bangladeshi consumers?
Yes! The adaptation rate is admirable. There are challenges, and most of them have to do with handset availability. Smartphones are expensive in Bangladesh, but there’s a reasonable good reason for that.
Right now, we cover 71% of the population with 4G. And by the end of next year, we will have all our sites under 4G coverage which amounts to approximately 95% of the population.
We have 30-40 million people in our country who still use 2G handsets, for them migrating is more difficult as 4G smartphones are expensive.
4G handsets are costly because the government has put taxes on its import. In my opinion, its (taxes) pretty reasonable and it appears to be a successful policy for the government actually to encourage manufacturers to build manufacturing facilities here in Bangladesh. And the government of Bangladesh has put in the right pair of barriers at the border. If you’re bringing in parts, the tariffs are more, if you’re bringing in components, they are lower. So the more you get into field manufacturing, the less expensive it is to build a headset here.
And while it may have caused a bit of a challenge for people to adopt, in the long term, this is an excellent decision. As the handset prices come down, people will eventually migrate 4G handsets.

Bangladesh Telecommunication Regulatory Commission (BTRC) is targeting to commence 5G mobile network by 2023? Do you believe we are on track to achieve that target?
Well, the good news is the equipment that we’re installing right now is essentially the last generation of 4g equipment. And it’s all designed to be somewhat compatible with 5g. So when 5g happens, we will be able to launch in pockets 5g where it’s needed. But 5g will not bring a revolution of new equipment. There might be some new antennas, spectrum and baseboards in our equipment, but it will not be a massive revolution.
There are three primary services for 5g. One is ultra-high-speed mobile services; the second thing is this massive machine type communication. So, MMPC, this requires very, very small bandwidth. Many devices around the world, for example, metering, electrical grid monitoring, water grid monitoring use this technology, this can be done partly on 4g as well.
And then there’s very fast, very highly reliable low latency, 5g services for gaming or autonomous vehicles or telerobotics. So, a doctor or a surgeon doing surgery remotely over a wireless network, those things are further down in the future for us in Bangladesh, although some of it might come, some specific applications might come early like robotics, manufacturing controls or so on. Although, the business cases are further out at this moment. Eventually, every application will happen in Bangladesh as well, and it will happen pretty quick. 

Right now, we cover 71% of the population with 4G. And by the end of next year, we will have all our sites under 4G coverage which amounts to approximately 95% of the population.

How do you deal with cyber security concerns?
There are a few things that keep me awake, and I spend a lot of time worrying about, cybersecurity is one of them. The devices that we have in our hands today are the supercomputers of a decade ago. We now operate on IP networks, just like computers do. So the risks are not only from handsets but for from other entities as well. Criminals might want to get in and play games with the networks for industrial espionage or for hacking information about customers. We have a fundamental responsibility to ensure the safety of our networks for national security reasons. So it’s something we spent a lot of time on.

Grameenphone has committed to the UN SDG #10 – (Reduced Inequalities) in Bangladesh, what are the aspects of inequality does GP want to address? What are the activities you have undertaken to serve this objective?
I want to open this by saying one thing, over the last decade, the growth of the Bangladeshi economy has been about 6.5% on average. In 2018, the growth was 7.3%, and hopefully, we will surpass that rate this year (2019). It is the result of policy, vision and execution of the government and people of Bangladesh. This incredible economic growth has raised millions of people every year from poverty towards the middle class, playing a significant role in reducing inequalities. Three key technologies facilitate in reducing inequalities are medical services, electrification, and mobile telecommunications.
When you put in mobile services into a community, you end up with people having access to trade, commerce and education and security. You also ensure access to essential services like medical care, information and connectivity with your friends. And it is in itself a form it is a form of socio-economic development.
So the very nature of what we do in the industry, not just myself but my colleagues in the telecom sector, contributes to reducing inequalities from the technological aspect.
We are also moving to get more women into management, it makes the company more productive. The decisions are more robust, and you represent the client base that you serve because 40- 50% of our client base are women. We’re also developing female managers for every one of the leadership teams in the company.
Thirdly, by the end of this year, we will have trained about 300,000 adults, and a million children face to face on how to use the internet safely. We are teaching them the importance of having strong passwords, dangers of sharing real-time location and securing private information from strangers — Simultaneously, guiding them on how to use the internet responsibly.

When you put in mobile services into a community, you end up with people having access to trade, commerce and education and security.

You have been in Bangladesh for three years now.Are you having fun?
So, does it look like I’m having fun? (laugh) . I’m very passionate about being here. It has been a humbling privilege to lead a company like this that does so much good. Grameenphone pays more corporate tax than about five next companies combined. We are fully aware that 70% of daily traffic goes through our networks. In places like Sylhet and Rajshahi, if our network goes down for 10 mins (it doesn’t), the economy stops because we have 80-85 market share. So this is a privilege.

How do you like to spend your free time?
Free time!what’s that? (laugh), we have a hectic schedule but my free time is mostly spent with my family. I have two daughters in Canada who are in university, so much of my time is spent sending them money (laugh). I have remarried, my wife is a Kenyan national, she’s from Nairobi. We have a four-year-old daughter, and they share their time between Nairobi and here (Dhaka). When they are in town, that’s 100% of my time.When they are away, I spend most of my free time reading. Most of the books that I pick up now have to do with international economics or internet or international politics. I usually use the reading List of Fareed Zakaria, host of GPS on CNN. I don’t miss this program, and I like watching what he does. And so I usually pick books out of his reading list. For fiction, I’m a huge Star Trek and Star Wars fan. I’ve read 400 Star Trek novels in my life. So I know everything about Star Trek you want to know about.

After two decades of spearheading innovation and devising successful strategies, Mahin Bin Mazher divulges how he envisions carrying X Index Companies forward. 

You have been spearheading X Index as the managing director for 20 years now. Can you talk us through the evolution of the company from its inception and to the current state in our digitized world?
In 1977 under the leadership of our Chairman, Architect Mazherul Quader, the journey began with the inception of Index Architects Ltd. There are approximately 400+ projects under its name to date. We set up operations of Index Argo Industries Ltd. in 2000, where we produce poultry, fish-feed and day-old chicks. Starting its journey as a trend setter, XCG is one of the largest porcelain and ceramics tiles manufacturing companies in Bangladesh. We incorporated Index Holdings Ltd. in 2009 which deals in trading and the hospitality sector. The company’s main objective is investments in different concerns of the group, including Hotel X. Currently X Index Energy Ltd. is setting up 3 HFO based power plants. Driven by ideology, we focus on technology and technical businesses which are sustainable for long term. We are also an active advocate of green technology, support zero-emission and also promote wastage reduction through recycling.

The five core values – integrity, ethics, excellence, unity and responsibility are cited as the reasons for the success of X Index. Apart from the core values, what other factors have contributed to make X Index the industry leader it is?
Apart from the core values, one important factor must be mentioned is the ‘trustworthiness’. Our companies have a solid reputation among the business community. Also, the invaluable contribution of our employees from all sectors play a crucial role. Without their hard work and dedication, the company wouldn’t have flourished the way it has over the last four decades.

As the managing director, do you have a strategy to make sure all the companies under X Index are running smoothly and efficiently? Can you talk us through your process?
One of the difficulties the organization faces is a decent layer of mid-level administration to make life simpler. Our top administration always fill in as coaches to increase the expertise of skills. The organization likewise acquired specialists from various countries. It requires some investment and exertion to streamline forms, oversee individuals, and ensure the details are accounted for. Learning doesn’t occur in detachment. It is best served when empowering the free progression of thoughts. I generally urge my senior administration to share their thoughts and perspectives to push ahead.

Apart from the core values, one important factor must be mentioned is the ‘trustworthiness’. Our companies have a solid reputation among the business community. Also, the invaluable contribution of our employees from all sectors play a crucial role. Without their hard work and dedication, the company wouldn’t have flourished the way it has over the last four decades.

Can you talk us through the power projects, how will they contribute to the power sector of the country and how is X Index looking to empower the community?
In Bangladesh, the per capita availability of power is comparatively low when contrasted with our neighboring nations and the world standard. Owing to this low availability, we have observed a massive gap in demand. In this manner we decided to contribute years’ worth of our experience into the power sector to alleviate the situation. We are executing these capital-intensive tasks right now in collaboration with the government. Highly skilled professionals are employed, along with electrical and mechanical engineers. This leads to industrialization and will automatically empower the community.

What has been some of your most memorable accomplishment?
We have been recognized with the Business Asia Award under the category of ‘Best Ceramics Industry’ in 2012. Adding another feather to our cap, we were awarded in the ‘Successful Company Leader’ category in the highly acclaimed Bizz Awards. We received this in 2018 for maintaining consistent business excellence. We were featured on ‘Asia Agribiz’. Also our many achievements have been covered in many foreign magazines. Perhaps the accomplishment we take the most pride in is that most of our companies are ISO certified.

Can you tell us the kind of CSR activity X Index is passionate about?
Through a not for profit organization called KKF, we are carrying out different projects. The Kamrunnesa Khatun Foundation (KKF) is an independent nonprofit charity, committed to bettering lives for the disadvantaged people in Bangladesh. Our vision is that of a country of vibrant, inclusive communities where social enterprises thrive to ensure sustainable and equitable development through capacity building and promoting entrepreneurship and transforming the lives of the disadvantaged population. We aim to assist the underprivileged people to engage in self-development and facilitate their socioeconomic mobility, reduce poverty, inequality and vulnerability. Some of the projects we have undertaken are:
Khamarir Hashi: It is a project which thrives to ameliorate the lives of farmers. This program focuses on able but unsuccessful farmers so that they turn their lives around and emerge as successful entrepreneurs. KKF provides both financial and technical help to the beneficiaries.
Shelter House: KKF works with the underprivileged children from all over Bangladesh. KKF has a shelter house for the street children, accommodating around 100 of them. These children were practically abandoned by all the other charity organizations. We stood by them. This house offers its children both formal and non-formal education, proper nutrition, medical and entertainment facilities.
Targeting the ultra-poor: Through this program, KKF identifies the needs of the households that are too poor to access the traditional development interventions. This is a tailor-made program based on the needs and capacity of the individual households.
Human Rights and Legal Aid Services: Access to justice is defined as the ability of people to seek and obtain a remedy through formal or informal institutions of justice, in compliance with universal human rights standards. KKF upholds that in order to facilitate smooth access to justice pathways, it is necessary to ensure the quality of justice particularly through legal aid and awareness.

In Bangladesh, the per capita availability of power is comparatively low when contrasted with our neighboring nations and the world standard. Owing to this low availability, we have observed a massive gap in demand. In this manner we decided to contribute years’ worth of our experience into the power sector to alleviate the situation. We are executing these capital-intensive tasks right now in collaboration with the government.

What has been the inspiration that has shaped you becoming a person you are today?
I value intellectual thought process above everything else. Growing up in a family of highly educated individuals, the passion for carrying on the legacy was instilled in me. I am thankful to have grown up in a culture which values education. This inspired me to pursue higher studies in the U.S. and also motivated me to gain professional expertise. It was being raised in a culture of learning that has nurtured my appetite for knowledge, and this has been the driving factor in the person I am today.

Marjiya Baktyer Ahmed catches up with Safwan Sobhan on how through extensive research and development, Bashundhara Group is at the forefront of making Bangladesh an import independent nation. 

What are the qualities do you believe that a successful leader must have?
To be a successful leader, I think a person must possess a blend of absolute integrity, honesty, decisiveness and must be a team player. Having these qualities also grows the capability to empower others to work efficiently. Leaders have to be able to rest their faith on their team and fully understand how to properly delegate.

As the Managing Director of Bashundhara Paper Mills Ltd. and Vice Chairman of Bashundhara Group, you have to oversee numerous operations. Do you have a strategy/ routine to ensure the efficiency of the processes?
Yes, I do follow a strategy and I believe it is an integral part of being a leader. We have weekly meetings where we prepare ourselves for every upcoming week. I need to ensure my Head of Departments and Head of Plants report back to me on a regular basis. Being the Managing Director I always have to have a bird’s eye view of the entire organization in real-time. Our integrated ERP system generates resourceful reports that enable us to build the necessary tools to forecast the challenges. We have deadlines and timelines for every piece of work, and from project to project basis. We set our KPIs and monitor them meticulously. Before we go live with a machine at production, we run it through an extensive troubleshooting process, following that it goes back to the R&D department. This is a daily routine we maintain to stay on top of any problems that may arise.

Can you please share with us about a challenge that you faced as a leader and how you pushed through?
Recently we have set up a new tissue machine from Austria, which has the capacity to churn out 100 MT tissues per day. We took the challenge to erect the machine in 18 months. It is located in our Unit 1 which is in Narayanganj. The machine is so highly technically configured that it was quite difficult for people here to figure out how to operate regularly. We did not have Bangladeshi expertise on this. The regular paper machines require about 80-100 people to run but this new one can be run by engaging just only 3 people.
So, to tackle this head on, we decided to go for extensive scheduled training. We sent our people to Austria and China to get trained on how to operate such a machine. Then we devised a plan on how to get the machine to Bangladesh, do the construction on time, and get it up and running. Finally, once it began running, it is not only supplying in Bangladesh, but products are also being exported in volumes.
Through this challenge we achieved specific knowledge of how to do team building, proper planning in tough times, then we did it a test scenario case and then we implemented it.

More potential for growth in the industry is in tissue, thermal paper and packaging paper. Thermal paper is what you use on a credit card machine, POS machines etc. It is an import substitute. Generally, Bashundhara Group enters in any industry with aims to take the place of the import substitute.

Who are the people that have shaped the person you are now?
My idol is always my father. I sincerely look at him, and thereby he has shaped me as the person I am today. Other than that, I would say the next person is my headmaster from my boarding school back in the U.K. His guidance has been invaluable to me.
From my boyhood, I was always fascinated by machinery and equipment. I am also fond of cars, so I was always into fixing and engineering things. I was keen on pursuing engineering, but eventually I opted for studying business administration, technology always fascinated me. This is how I ventured into the paper mill industry. They say, when you are born, you are given a piece of paper, and when you die, you are also given another. Many people say it’s a dying industry, but it has been maintaining a worldwide growth rate of over 6%. In the modern age, there is a movement to go paperless, but despite the digitization and this shift to an online dominion, the tangibility of paper is irreplaceable.

‘Bashundhara Paper’ has been the biggest paper exporter from Bangladesh for the past few years. What are the factors that helped “Bashundhara Paper” to reach this position? What are the future goals?
We have been adding capacity every year to match the demand of the market. We have recently listed ourselves on the Dhaka & Chittagong stock market being the biggest paper mill as well as the exporter. In terms of quality, India- our neighboring country - has a bunch of paper mills all over, however very few of these could compete with the quality paper that we manufacture. That is why our export market has grown substantially in India right now. India has a gap of 300,000 tons of paper per annum. We are basically filling that gap in, partially which is why export of our quality paper & tissue products have gone up.
Our future goals are to practice cost minimization and run the business more efficiently. At present, out of 14 machines, we have made 10 of our machines as closed loop machines, which means that the water discharge is almost zero. Before, we had to use 20 tons of water to make 1 ton of paper. We have reduced that down to 7 tons of water. We have made substantial reduction on electricity, steam consumption, as well as chemical consumption. We have switched to chemicals that are bio eco-friendly. So, all these aspects we are doing day in and day out, and cutting our costs, while also becoming more environmentally conscience.

Which segment would you say there is more potential for growth?
More potential for growth in the industry is in tissue, thermal paper and packaging paper. Thermal paper is what you use on a credit card machine, POS machines etc. It is an import substitute. Generally, Bashundhara Group enters in any industry with aims to take the place of the import substitute. The products that were once imported, now we can produce it locally and export it as well.

You have recently received FSC-CoC (Recycled Paper) certificate from the regulatory authority Control Union. How crucial do you think it is for consumers to use responsibly sourced paper products?
It is surely a responsible recognition, but for Bangladesh market we have not seen much of a big impact yet about FSC, mostly due to knowledge gap. But for the export market, it has been giving us a competitive edge for marketing and exporting. When we export to Europe, that is a must. When we export to the U.S. and the U.K, these certificates are also must to give documents.
The full form of FSC is “Forest Stewardship Council”. Basically, when pulp is produced from trees, it could be an Acacia tree or it could be a Rainwood, or Eucalyptus tree. To produce pulp, trees are uprooted and because of this, for every one tree taken out, ten trees have to be replanted. These pulp producers provide relevant certificates and necessary endorsement before giving us pulp products. The chemicals which we are using to recycle the paper, de-ink the papers, those chemicals has to be certified by FSC-COC, which implies they are not harmful to the environment.

How crucial is the role of R&D to remain competitive in the global market?
Our R&D department has been quite productive and inventive from the beginning, I personally look after its regular operation. Every time, based on market data/ feedback, we decide for the development of new SKUs or product range, it all starts from my endorsement and goes into trial to the market with my concurrence also. It is always critical to keep track what new facility can bring about and ultimately this is the only approach we take to be competitive in domestic as well as in the global arena.

How is Bashundhara Group constantly innovating themselves?
Bashundhara Group believes in opportunity-creation for the nation; hence innovation is the key to make it happen. The Group as a whole try to remodel itself every now and then to stay updated with the trend, as well as to remain competitive in the business arena.
Whenever we think of a new investment, we always look for import-substitute. We look into the industry, and in our R&D department we are always working on products that will be an import-substitute, even the ones in the pipeline right now. They all will be substituting import-goods for Bangladesh and will be saving foreign currency.
During early 2020, our new Bitumin plant will be in production. As Bangladesh is embarking upon building huge infrastructure, for roads and bridges, Bitumin is a product which has been imported a lot, from all over the world. We will have the capacity to cater to the national demand, as well as export. Our Bitumin will be guaranteed for 10 years, once it is put on the road.

How does meeting innovation requirements affect the rate of employment?
Bashundhara paper mill is not just an ordinary paper mill, we do not produce only simple writing paper rather we produce paper materials across the board. Paper mills in Bangladesh would only produce writing and printing paper, which you see as normal A4 paper or paper for newsprint. Instead, we have taken ourselves away from the conventional market, geared up ourselves for the next market, which is a specialty grade. Your everyday use for thermal paper which is used on every POS machine, NCR paper, duplex board, packaging paper – these are the growth markets we are looking at. So we are segmenting more in different specialty grades. There’s a growth and sustainability over there, as well as positively impacting employments. 

Our R&D department has been quite productive and inventive from the beginning, I personally look after its regular operation. Every time, based on market data/ feedback, we decide for the development of new SKUs or product range.

Bashundhara Group’s core value is ‘For the People, For the Country’. How has this value shaped the company and its operations over the years?
As a company when we say For the People, For the Country; we mean it. All the concerns are built in for the people, for the country. They are adding value to the country, and it is a value addition for the employees as well. Take our real estate business for example, when we started back in 1987, we sold 3 lac Taka per katha, which in turn of time over 3 crore at present. So, we single- handedly as a company, made 50,000 multi-millionaires in the country. We handed over 50,000 plots. Other than that in all our products, we never compromise on quality and we always do extensive R&D, training for our employees so that they are well fitted and well educate, in every sphere of their lives.

Apart from running such a massive company, Bashundhara Group also engages in CSR activities. Can you elaborate please?
I believe great success comes with great responsibilities. Although Bashundhara Group has always been very much submissive about all of its philanthropic initiatives, it is of no doubt a big range of its CSR initiatives are running across many fields around us. Somewhere free eye clinic is giving supports to the poor and needy, somewhere Bashundhara Ad-din Medical College Hospital in Keraniganj is providing the cheapest medical care in its 500-bed hospital, yet Friday Clinics in Manikganj and Comilla awaits with best doctors of the Country. A Special Children Foundation for the autistic, for underprivileged children, having a capacity of 250 students, is a perfect institution of its kind. We have an orphanage of 1000 children, which is located in Bashundhara also. We always try to remain beside the needy in crisis time e.g. during the winter season, we always extend our supports all the Country with warm clothing, relief supports to the flood or, cyclone-affected coastal people.

What would you like to say to the new entrants in to the business sector?
I started 10 year ago, back in 2009. I would say where I am today, obviously I have been given the position to be where I am, but I have taken things furthermore up. But remember to dedicate yourself to your work as your passion. Whatever work you do, you should enjoy it. Do not think of it as a burden. When I do my work, I really enjoy doing it, I take it as a passion. I am a passionate golfer and passionate businessman also.