Business Potential Study

Sri Lanka and African Countries

Presented By – Sudeep Nair

Objective

z Determine import potential

z Determine target goods

z Area wise analysis

z Major Competitors
Sri Lanka

Favorable Factors

z Total Value of Imports 2009 : $13,638 Million

z Rise in Imports from previous year : $ 2237 Million ( 19.6% )

z India ranked 1st in Importers List with $ 2738 Million in Imports

z FTA agreement in place

z Political Relations favorable for trade

z Location proximity

z GDP growth rate @ 3.5% ( 2009 ) , Forecast @ 6.5 % ( 2010 )

z Favorable Currency Conversion Rates

z Increase in demand for consumer electronics

Sri Lanka

Target Goods
1.Mobile Phones

z Current Market size at 15 million subscribers ( First Quarter 2010 )

z Annual growth rate at 39%

z Average monthly sales of handsets is around 100,000 units

z Grey market share is around 15 – 20 %

z Reduced import duties and taxes on mobile handsets in 2010

z 28% use second hand handsets

z Introducing low cost handset with warranty period

Sri Lanka

Target Goods
2.Television

z Average annual TV sales – 300,000 Units

z Annual growth rate at 20%

z Flat Panel TV sets in Demand : Hold 30% share

z High demand due to new players entering the digital broadcasting industry

z Advertising and local promotion activities is the key to brand awareness

z Technology focus : LCD and LED

z Service capabilities key to brand loyalty

Sri Lanka

Area Wise Analysis

City Province Approx. Population

Colombo Western 11,00,000

Kandy Central 6,00,000

Dehiwala-Mount Lavinia Western 9,00,000

Morutawa Western 8,00,000

Negombo Western 6,00,000

Trincomalee Eastern 5,00,000

Kotte Western 6,00,000

* Sri Lanka has the slowest growing population in South Asia at 0.9% yearly
Sri Lanka

Major Competitors
Television Market Mobile Phone Handset Market

LG Nokia

Samsung Samsung

Phillips Sony Ericsson

Sony Micromax

Sanyo LG

Chinese and Local Brands Apple

Chinese Brands

* There is major market of second hand goods as many cannot afford to buy first hand
Africa

Favorable Factors
z Volume of trade increased by 285% in last four years ( FICCI )

z Trade figure sits at $ 25 Billion ( 2008 )

z India Exports to Africa Figure at $ 14.81 Billion

z Trade expected to rise to $ 50 Billion by 2010 ( FICCI )

z Major areas of export are south and east africa.

z Favorable political conditions between the two countries

z India a major fund provider for development

z Huge Middle Class population estimated to be larger than India

z Rising disposable income

z Many major investments done by Indian organizations already

Africa
Target Goods

z Total value of consumer electronics market stand at $ 6.7 Billion ( 2010 First Quarter )

z Market expected to rise up to 9.91 Billion by 2014

1. Computer Hardware

z Market share is about 61% of the consumer electronics market

z CAGR is forecasted at 11%

z Rising computer penetration levels, falling prices, retailer promotions contributing to high growth

z Sales expected to rise from $ 3.73 Billion (2009) to $ 4.12 Billion (2010)
Africa
2. Audio/Video Devices
z Market share stands at 18%

z CAGR forecasted at 11%

z Growth fueled by new technologies and transitions towards digital television.

z Sales expected to rise to $ 1.20 Billion in 2010

z Set Top Boxes also show a promising trend apart from other Audio/Video equipment

3. Mobile Handsets
z Market Share stands at 22%

z CAGR forecasted at 5% : Subscriber penetration at 114% ( 2014 )

z High Demand for 3G sets

z Sales expected to rise to $ 1.85 Billion in 2010

z Replacement and accessory market shows high growth patterns

Africa

Target Countries

z Angola

z Ethiopia

z Rwanda

z Equatorial New Guinea

z Niger

z Republic of South Africa

Africa

Major Competitors
Computer Hardware Audio/Video Equipment Mobile Handset

Sahara Sony Apple

Mecer Alpine Nokia

Acer JVC Mercury

Asus LG Mi-Fone

Dell Samsung Motorola

Gigabyte Logitech M-Tech

HP Phillips Samsung

MSI NU Sony Ericsson

Lenovo Audiovox
Thank You