PEL eyeing Indian market
Wednesday, May 23rd, 2012 6:07:40 by Wajahat Javed
PEL eyeing Indian market
Tuesday, May 22, 2012: Pak Electron Limited (PEL) wants to make the most of the improving ties between India and Pakistan, 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 Indian manufactured in refrigerators, 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.
Tags: , India, PEL
Short URL: https://www.newspakistan.pk/?p=23085
Posted by Wajahat Javed
on May 23 2012. Filed under Business, Pakistan.
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