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‘PEL can capture 20% of Indian fridge market’

SHAMK9

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LAHORE: Pak Electron Limited (Pel) is planning to take advantage of the blossoming ties India by rolling out its products in Indian Punjab, a market larger than all of Pakistan.
“Out of the 10 million units of refrigerators sold in India annually, we are hopeful to capture at least two to three millions units of the market,” said Pel Managing Director Haroon Ahmad Khan during a corporate briefing at the Lahore Stock Exchange on Tuesday. The country’s second largest home appliance manufacturer plans to introduce its product in Indian Punjab and then gradually spread to rest of the country
The local market is almost ten times smaller than India as 1.3 million is the annual sale of fridges in Pakistan.
“The price of our refrigerators is much higher than refrigerators manufactured in India, but the quality and variety is much superior,” he said.
We don’t want to compete with multinational companies working in India but locally manufactured refrigerators, he added.
Cost of doing business in Pakistan is much higher than India mainly due to high energy costs, interest rates and high wages, he added
PEL is also the largest manufacturer of engineering goods and provides products such as distribution transformers and energy meters to power utilities, industries and individual customers.
In the power division, Pel has a market share of 42% followed by Siemens with 34%.
In home appliances, Dawlance leads with a market share of 49% followed by Pel with 29%, according to 2009-10 data provided by PEL.
Despite a hiccup in revenue during 2011, Khan said the company’s growth stands at an average 22% annually in the last 10 years.
Sales plummeted by 32% to Rs13.5 billion in 2011 as Water and Power Development Authority – the largest buyer of power division products – did not invest in system augmentation and expansion in new villages.
“Being an election year, we hope that Wapda will start to purchase transformers which will boost our power division sales and jack up the overall figure,” said Khan. Pel forecasts sales to reach a new high of Rs25.34 billion in 2012.
Published in The Express Tribune, May 23rd, 2012.
‘PEL can capture 20% of Indian fridge market’ – The Express Tribune
 
Well, may the best company win. Competition always works in the consumer's favor. BTW, I'm amazed to see that only the Indian Punjab market is bigger than that of entire Pakistan. Sounds amazing.

Anyways, it's going to be a tough job. Indian market is highly competitive and riddled with big firms each vying for their share of the pie.

In a segment such as consumer electronics and home appliances, it's very difficult for a new entrant to make its mark.
 
The local market is almost ten times smaller than India as 1.3 million is the annual sale of fridges in Pakistan.
“The price of our refrigerators is much higher than refrigerators manufactured in India, but the quality and variety is much superior,” he said.

I really want to know as to how PEL thinks that its quality and variety is more superior ?
 
How can they be superior from Videocon, Whirlpool, Samsung or other counterparts?
 
LAHORE: Pak Electron Limited (Pel) is planning to take advantage of the blossoming ties India by rolling out its products in Indian Punjab, a market larger than all of Pakistan.
“Out of the 10 million units of refrigerators sold in India annually, we are hopeful to capture at least two to three millions units of the market,” said Pel Managing Director Haroon Ahmad Khan during a corporate briefing at the Lahore Stock Exchange on Tuesday. The country’s second largest home appliance manufacturer plans to introduce its product in Indian Punjab and then gradually spread to rest of the country
The local market is almost ten times smaller than India as 1.3 million is the annual sale of fridges in Pakistan.
“The price of our refrigerators is much higher than refrigerators manufactured in India, but the quality and variety is much superior,” he said.
We don’t want to compete with multinational companies working in India but locally manufactured refrigerators, he added.
Cost of doing business in Pakistan is much higher than India mainly due to high energy costs, interest rates and high wages, he added
PEL is also the largest manufacturer of engineering goods and provides products such as distribution transformers and energy meters to power utilities, industries and individual customers.
In the power division, Pel has a market share of 42% followed by Siemens with 34%.
In home appliances, Dawlance leads with a market share of 49% followed by Pel with 29%, according to 2009-10 data provided by PEL.
Despite a hiccup in revenue during 2011, Khan said the company’s growth stands at an average 22% annually in the last 10 years.
Sales plummeted by 32% to Rs13.5 billion in 2011 as Water and Power Development Authority – the largest buyer of power division products – did not invest in system augmentation and expansion in new villages.
“Being an election year, we hope that Wapda will start to purchase transformers which will boost our power division sales and jack up the overall figure,” said Khan. Pel forecasts sales to reach a new high of Rs25.34 billion in 2012.
Published in The Express Tribune, May 23rd, 2012.
‘PEL can capture 20% of Indian fridge market’ – The Express Tribune

Dear friend...if your product is good i will go for it..Even i have heard from one of my friend in Delhi that once Pakistan start exporting cement to India, cement price in India is going to decerease...Is it true?
 
lol every company says that. Welcome to the world of marketing.

Well dude, I need no lessons in marketing...I work for a management consulting firm and I have worked closely with FMCG's worldwide, I understanding all marketing gimmicks...but there has to be something that makes you say something.

If they think their products are better, I want to know why do they feel that way ???
 
Very good. We should capture 100% of everything india.
 
^ why? your teen daba team is not present today?
 
PEL is high quality and much expensive fo majority of Indians.
 

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