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Walton to launch a business in USA

Black_cats

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Walton’s globe trotting

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Abbas Uddin Noyon & Ahsan Habib Tuhin
24 May, 2021, 10:30 am
Last modified: 25 May, 2021, 01:58 pm

Walton US will provide import, export and procurement services in North America, reveals Walton’s posting on the Dhaka Stock Exchange website

walton global expansion


Walton Hi-Tech Industries Ltd is going to set up a subsidiary company named "Walton Corporation United States of America" as part of its plan to expand its business globally.

The home electronics maker plans to invest $0.5 million to purchase ordinary and preferential shares to form the new company, subject to approval from the Bangladesh Bank and other relevant regulators, according to Walton.

Walton US will provide import, export and procurement services in North America, reveals Walton's posting on the Dhaka Stock Exchange website.

Besides, Walton's board has decided to open branches or liaison offices in India, South Korea, Nepal and the United Arab Emirates through which they want to expand the company's market and develop technology worldwide.

Walton also plans to apply for the enhancement of foreign currency limit to operate the proposed foreign branches and liaison offices.

It will be the first local electronics giant which is going to set up its company in the US, said a company official, seeking anonymity.

Golam Murshed, managing director of Walton, told The Business Standard, "The vacuum in terms of expansion considering domestic needs we now have will not be there in the next two or three years. So, our aim is to become a global brand by 2030. That is why we have started to open new offices in different countries as part of our vision.

"We want to become one of the five leading brands in the world by 2030."

The company is now running its domestic business under two brand names – Walton and Marcel.


Walton ropes in former Samsung CTO for R&D in Seoul, reveals MD


In 1997, when five brothers led by the eldest one SM Nurul Alam Rezvi started importing black-and-white television sets, they could not imagine that they would become so big and a household name in Bangladesh.

After their success in selling televisions, they began thinking big and set up Walton Hi-Tech Industries in 2006 to manufacture electronics in Bangladesh.

Walton started out with motorcycles and refrigerators, but the motorcycles did not get as much popularity as their refrigerators did.

At present, the electronics giant controls over 60% of the electronic household product market. Occupying over two-thirds of the local refrigerator market, and around half of television and one-third of air conditioner markets, the company is now heavily pursuing its dreams to flourish in the global map.

Currently, the company exports home electronics to around 40 countries.

The local brand now eyes a one-fourth share in the domestic market for lifts even though it is a new entrant to the market segment.

Murshed said, "We have been selling our products in the US through Amazon since 2018. We are also exporting several products to the country. The demand for our home appliances in the US has encouraged us to expand our market there."

Walton is a company that has been working to ease people's lives as well as create employment opportunities in Bangladesh, said the Walton's managing director.

"Apart from supplying high standard consumer goods to the domestic electronic market, Walton has ensured over 25,000 direct and about 1 lakh indirect employment for people. Now, we are exporting our products abroad," he said.

Walton's marketing network spans the country, with more than 350 sales points called Walton Plaza and over 25,000 dealers.

In the fiscal 2019-20, Walton sold electronic products amounting to Tk4,107 crore and made a profit of Tk726 crore. It also exported products worth Tk14 crore in FY20.

During the fiscal year, the company sold refrigerators and compressors worth Tk2,767 crore, air conditioners worth Tk348 crore, televisions worth Tk713 crore, electronic appliances worth Tk227 crore and home appliances worth Tk184 crore.

In FY20, because of the pandemic hit, Walton registered a 39% decline in its refrigerator sales year-on-year, but saw a 55% increase in air conditioner sales, 93% increase in television sales, a 1,685% increase in electronics appliance sales and a 151% increase in home appliance sales.

The listed hi-tech giant posted a 16% year-on-year jump in revenue over the nine months of the current fiscal year alongside ten-time export receipts, according to Abul Bashar Howlader, its additional managing director and chief financial officer.

Over the third quarter (January-March), the company's sales crossed Tk1,600 crore, while it secured Tk2,665 core in revenue over the first six months of the fiscal year.

For the nine months, its revenue grew to Tk4,292 crore.

Sales of cooling products – refrigerator and air conditioners – grew, but television sales outpaced all other segments, both at home and abroad.

In the first nine months of FY21, Walton's export grew nearly ten times to over $8 million, said the chief financial officer, adding that markets across continents now order more televisions from his company than the previously dominating cooling products.

However, the cooling product segment is also growing and made more than two-thirds of the company's total revenue for the first three quarters, Abul Bashar said.

In 2020, Walton Hi-Tech Industries Ltd got listed on the stock market. Currently, the company's per share is being traded at Tk1,286 at the DSE.
As per its shares' values, the company's market cap now stands at Tk37,832 crores.

Walton gave a 200% dividend to its investors last year.

On Monday, Walton's share price rose by 2.97 or Tk37 at the DSE.
 

Destranator

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Well Bois we made it to America :cheers: 🇺🇸 , can't wait to see Walton Products in my nearby electronics shops lol
Give it two more years - it will happen.

But this below will be a tall order for sure.

One should aim high - not low.


Wonder what the Walton family would think of these products. Would they stock them at Walmart?
:lol:
 
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UKBengali

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Well Bois we made it to America :cheers: 🇺🇸 , can't wait to see Walton Products in my nearby electronics shops lol


You may already have brought one of these Walton products under OEM brand smartphone.:azn:

Below article is from last year.



‘Made in Bangladesh’ smartphones headed to US

Local electronic giant Walton pulls off the feat



Muhammad Zahidul Islam

Walton is set to export smartphones to the US, in what can be viewed as a remarkable endorsement of the leaps taken by Bangladesh's manufacturing sector.
"The dream of exporting 'Made in Bangladesh' smartphones is now coming true," said SM Monjurul Alam, managing director of Walton, adding that the quality of the locally-made smartphones with advanced features has drawn buyers' attention.
For all latest news, follow The Daily Star's Google News channel.
The first consignment of the smartphones, which would be priced between $100 and $200, will be out of the gates of Walton Digi-Tech Industries's plant in Chandra, Gazipur in March 1.
The smartphones are bound for a renowned American brand and Walton is the original equipment manufacturer, Alam said, while declining to disclose the name of the brand.
This kind of production is known as contract manufacturing, which is commonplace in Bangladesh's garments sector.

"The US importer signed an agreement with us a few months ago and we were improving our quality before finalising the shipment."
The homegrown electronics giant is not stopping at this.

After the US it is planning to ship smartphones to Europe, Australia and other developed nations. "Walton is now producing international standard smartphone," Alam added.
"This will be a huge moment for Bangladesh and all Bangladeshis should feel proud of this achievement," Telecom Minister Mustafa Jabbar told The Daily Star.
Walton has been at the forefront in this field and keeps hitting new milestones, he said.
Indeed, the company was the first to set up a mobile phone manufacturing plant in Bangladesh in October 2017.
So far, the plant has churned out 60 lakh units: 17 lakh smartphones and 43 lakh basic phones.
"Walton along with some other companies is making the country proud as currently 40 per cent of the domestic demand for handsets is met by nine local firms," Jabbar said.
The assembly boom follows a government decision in 2015 to slash equipment importing tax to just 1 per cent from as high as 100 per cent.
"That was a changemaker. And we are now harvesting the results," he added.
Walton also excels in manufacturing of other high-tech products too: it is shipping a wide range of electronics and electrical appliances to about 35 countries in Asia, Europe, Africa and the Middle East.
It inked an agreement with global e-commerce giant Amazon last year to market 'Made in Bangladesh' electronics and ICT devices in the US. The shipments will start from this year, according to a Walton official requesting anonymity.
Walton is also manufacturing mobile phone accessories such as chargers, batteries, earphones and motherboards and meets its entire demand for accessories from local production.
The milestone of Walton's mobile export will be celebrated on the factory premises of; Finance Minister AHM Mustafa Kamal, Jabbar and ICT State Minister Zunaid Ahmed Palak will grace the occasion.
Another announcement will come on the same day: 26,000 laptops manufactured at the plant will be shipped to different markets.
Last year they sold 12.02 lakh smartphones and 41.76 lakh feature phones in the local market.
Since Walton is gradually finding its feet overseas, officials said they will now double down efforts to make it the best Bangladeshi brand in the global market by 2030.
 

Bilal9

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Wonder what the Waltom family would think of these products. Would they stock them at Walmart?
:lol:
Walton as a brand name will not work. Possibly their other brand-name which is Marcel is a better choice.

In any case, reviving an older brand name is an even better choice for things older Americans buy, like home appliances.

Brand-names can be bought for a fee. Chinese brand Haier decided to produce GE branded appliances and market them in the US after they bought the GE brand-name for appliances reportedly for many millions of dollars, when GE exited the consumer appliance business.

GE still makes all types of other products though -- including aircraft engines. Not appliances anymore.

These days the smaller Chinese companies on eBay and Amazon don't really care about what name they slap on their products. It's like a seller free-for-all but if you're a buyer you're rolling the dice anytime you are buying a non-brand name Chinese product. You could get lucky, or not.

You see strange nonsensical brand-names from China all the time. They type up anything like ACCYYYR or BUBAMMUARR. Doesn't even have to make sense. And they charge almost the same money as reputed brands. Reviews are often fake too.

Gone are the days when a brand-name actually meant something. Like Panasonic for Electronics (offered by Matsushita). Or Subaru (offered by Fuji Heavy Industries).

News article above hints at one of Amazon's devices made by Walton. I wonder if it is one of their cheaper FIRE HD tablets....
 

SpaceMan18

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Walton as a brand name will not work. Possibly their other brand-name which is Marcel is a better choice.

In any case, reviving an older brand name is an even better choice for things older Americans buy, like home appliances.

Brand-names can be bought for a fee. Chinese brand Haier decided to produce GE branded appliances and market them in the US after they bought the GE brand-name for appliances reportedly for many millions of dollars, when GE exited the consumer appliance business.

GE still makes all types of other products though -- including aircraft engines. Not appliances anymore.

These days the smaller Chinese companies on eBay and Amazon don't really care about what name they slap on their products. It's like a seller free-for-all but if you're a buyer you're rolling the dice anytime you are buying a non-brand name Chinese product. You could get lucky, or not.

You see strange nonsensical brand-names from China all the time. They type up anything like ACCYYYR or BUBAMMUARR. Doesn't even have to make sense. And they charge almost the same money as reputed brands. Reviews are often fake too.

Gone are the days when a brand-name actually meant something. Like Panasonic for Electronics (offered by Matsushita). Or Subaru (offered by Fuji Heavy Industries).

News article above hints at one of Amazon's devices made by Walton. I wonder if it is one of their cheaper FIRE HD tablets....

True lol , my parents did get a new GE AC though
 

X-ray Papa

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I hope there's more companies like wanton in the next 20 years. In that way we can technological like china.
 

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