presentation on pakistan may 09

8/14/2019 Presentation on Pakistan May 09

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Haier Pakistan Private Limited

Prepared by: Naveed Mirza


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index

OutlineSlide

number

Outline

1 Title 13 14 Currency

2 Index 15 18 Electricity

3 Pakistan political highlights 19 20 Oil prices

4 5 Pakistan security situation 21 22 Gold & silver prices

6 7Pakistan economichighlights

23 25 Metal prices

8 9 Pakistan inflation 26 36 Home appliances

10 11 Pakistan current account 37 - 38 Conclusion

12 KSE 100 index


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Political highlights

The Supreme Court overturned its own verdict barring the Sharifbrothers from contesting electionsThe Pakistan Peoples Party (PPP) and the Pakistan Muslim League-Nawaz (PML-N) have agreed to continue sharing power in Punjab 2.4 million civilians have fled recent fighting between security forcesand the Taliban in the northwest of the countryAbout 90% of the people of Mingora and 35% of the district have left

their homesPakistan is to extend its war on the Taliban beyond Swat into the fiercelyindependent tribal areas bordering Afghanistan & Waziristan with armyoperationsUnited Nations appealed for $543 million to provide support fordisplaced

Chief Justice Iftikhar Mohammad Chaudhry indicated a likelihood of re-examination by a larger bench of the validation by the Supreme Court ofthe imposition of emergency rule on Nov 3, 2007Extremists have warned to target Lahore, Rawalpindi, Islamabad andMultan against government facilities in coming days and weeks


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Date Bomb / Suicide attack Date Bomb / Suicide attack

29-AprAmbushed police unit ISB-Peshawar motorway

14-MayDera Ismal Khan 3 policeposts attached by handgrenades

5-May

Peshawar Suicide car bomb

blast 16-May Peshawar car bomb blast

11-May Kohat suicide bomb blast 22-May Peshawar bomb blast

11-MayLandi Kotal two girl schoolsblown up

27-MayLahore suicide car bombblast

13-MayPeshawar 2 logistic

terminal; attached

28-MayPeshawar & DIKhan bomb

blast

Pakistan Security situationApr May 09


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Pakistan Security situationApr May 09


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Economical highlights

June 09 Budget:

Government will bring agricultural income, stocks exchange, real estateand the services sectors under the tax netIncrease investment in the education and health sectors from 3 to 4 % ofthe GDPIMF agreed to raise the deficit target for fiscal year 2009-2010 to 4.6 %of gross domestic product from 3.4% The government is likely to raise

the development expenditure by Rs180 billion to Rs560 billion

US has approved $1.9 billion for Pakistan for the next fiscal year

World Bank will back for Pakistan the $68 million regional electricitytransmission project from Tajikistan and the Kyrgyz Republic

The World Bank is scheduled to provide $961 million to Pakistan in the

last quarter of the current fiscal year


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Economical highlights

Pakistan produced worth $633.573 million during 2004 08 from the

Saindak Copper-Gold Project Chagai district1. Gold 7.7462. Copper 86,0133. Silver 11.0464. Magnetite 14,482

Gas tariff will be reduced from July 1 for the next six months, the SuiSouthern Gas Company to reduce its tariff by Rs28 per million Britishthermal unit and the Sui Northern Gas Pipelines Ltd by Rs25 perMMBTU

The United States announced a $110 million relief package to help

displaced during the military operation in Swat and the adjacentvalleys

International bids have been invited for the construction of Bhashadam, a special invitation had been extended to the three DamCorporation of China

A as sale- urchase a reement is si ned between National Iranian Oil


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Pakistan Inflation %

Monthly = % change in index in a month over the preceding month

* non-food non-energy; **SPI for all income groups combined

CPI Monthly


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Pakistan Inflation %

Monthly = % change in index in a month over the preceding month

* non-food non-energy; **SPI for all income groups combined

CPI Year on Year

Consumer price index


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Pakistan Total reserves in million USD


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Pakistan reserves in million USDSBP & Banks


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Haier Pakistan Private LimitedKarachi Stock Exchange 100 Index Rs.


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International 1 USD based AveragePPY - Euro PKR Graph

Apr - May 09

Euro

PKR

JPY


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One USD based AverageOpen MKT & Bank PKR Graph

Apr May 09

Open MKT rate

Inter bank rate


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Electric PowerJan May 09

The situation during March was bad, it will worsen during July -

August, adding another 5,000MW demand to the current tally.The Government fears that total deficit this year might gobeyond 5,000MW

Demand and supply gap: Energy sector experts estimate that by themid of June 2009, the demand of electricity would be nearly 22,000

megawatts whereas previous year demand was 16,000MW and current17,000MW

Average load-shedding Urban 6 to 8 hours & rural 8 to 12 hours inApril May 09 period

The National Electric Power Regulatory Authority (Nepra) has raisedtariffof seven of the eight electricity distribution companies in terms offuel adjustment charges for the month of March 18 to 86 paisa per unitcosting increase up to 20% average for end user

The government has decided to withdraw subsidy 17.5% on electricityand to raise power tariff10% in July 09 & next by Dec 09 to cover deficit


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Electric supply & demand differenceDec 08 May 09 (Maga Watts)

Supply line

Demand

Shortfall


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Electric PowerPlaned New power projects May Dec 09

19 projects start commercial operations between May and December 2009Total of 3359MW

PLANNED


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Electric PowerCurrent status on planed new power projects

DuebyMay09end

DuebyJune09

DuebyJuly09

DuebyAug09

DuebyNov09

DuebyDec09

DuebyDec09

Total 1484MW

UPDATED


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Haier Pakistan Private LimitedOil prices global

International OPEC barrel price In USD


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Haier Pakistan Private LimitedOil prices local

Fuel - 15 days fortnightly per Ltr Price Rs.


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Haier Pakistan Private LimitedGold rates global & Local

International US$ per ounce

Pakistan 10 Gram Gold rate in PKR (22 Carat)


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Haier Pakistan Private LimitedSilver rates global & Local

Pakistan 10 Grm Silver PKR

International USD Per Ounce


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Haier Pakistan Private LimitedInternational Market Metal prices

AVERAGE PRICES US$ / TON

Copper

Alum-Alloy

Prim-Alum


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Polypropylene market ratesUSD per Ton


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R-134A & R-22 Local MKT rates Rs.Average per month


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Home appliancesIndustrial production comparison

Change 8.73

Change 21.04

Change 87.06

Change 44.70


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Home appliances6 months Industrial production comparison

Change -12.25

Change -17.75

Change 49.89

Change 38.81


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April - May 09 secondary sales %Dealer feedback report

Dawlance Stock Shortage was the main Issue

PEL Water Dispenserwere the main driving forcesHaier with its aggressive marketing tactics, main part product was Split Ac


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Price trend Jan - May 09AC Invoice price comparison

New

Model


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Price trend Jan - May 09Split AC Invoice price comparison

New

Model


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Haier Pakistan Private LimitedPrice trend Jan - May 09

Ref invoice price comparison


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Ref invoice price comparison


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WM invoice price comparison


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MWO invoice price comparison


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TV invoice price comparison Low End


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TV invoice price comparison Middle End


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Haier Pakistan Private LimitedConclusion remarks

Market feedback:

Massive increase in prices in less than three years, the price of split-ACof 1.5 tons has doubled

Market size is reduced in AC (as expected) but this year dealers haveearned good profit on haier ACs due to retail approach

The prices of deep freezers and refrigerators have not been increaseddespite the peak sale season due to tight economic conditions and nogaps in supply and demand.

The sales of domestic appliances are not up to the mark of last year dueinflation

The prices of raw materials like parts and metal had fallen in Dec, 2008hence more chances of profitability for manufacturers.

The devaluation of rupee against the dollar by 25% in the one year hasoffset the impact of falling raw material prices keeping the cost of


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Haier Pakistan Private LimitedConclusion remarks

PEL will introduce LG AC in mid/end June 09 with increased price(tentative)

Orient, Kenwood are expected to increase Rs.1000 1500 in split ACprices since they have taken money but not able to supply to the market.

Dawlance had already increased in mid May 09

Haier should keep product visibility support activities for Haier productsin the market (display corners and brandings)

Price control support is must and trust on company policies is essentialby all sales channels

Haier should focus more on customer of refrigerators, deep freezers andsplit air-conditioners

Haier after sales service is moving towards right direction need to keepit on track

Thank you.

Haier Marketing Department

presentation on pakistan may 09

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