project proposal for bank purpose

1. CANDIL ENTERPRISES (PVT)
LTD.
1.1PROMOTING COMPANY
CANDIL ENTERPRISES (PVT) LTD. is a Company which is
going to be incorporated, under the Companies Act No. 07 of
2007 with the primary objective of importing, assembling
and distribution of Wrist Watches & Clocks.
The Company “ CANDIL ENTERPRISES” was
commenced it’s commercial operation as a Proprietorship
in 2003. And now the Company has been developed and
expanded to a Private Limited Liability Company.
The Success of the “ Candil Enterprises” is not just
because of the funding, but because of the unmatchable
business acumen of the main investor, Mr. S. S.
Haputhanthri of the Company and the great marketing
efforts done by Mr. R. P. Pothupitiya, the Marketing
Manager of Candil Enterprises.
1.2 THE PROPOSAL
The Primary objective of the business is importation,
assembling and distribution of Watches, Clocks and Alarm
Clocks.
The management of the Company decided to expand the
business by investing more working capital to the
Company and to open a Retail Outlet at Stanley
Tilakarathna Mawatha, Nugegoda.
1

2. 1.3 LOCATION
REGISTERED ADDRESS
The registered Office of the business is located at
No. 55/4, Fife Road, Colombo 05, Sri Lanka.
OFFICE & STORES
The Office & Stores is located at 46/8, 1st
Lane,
Vidarshana Mawatha, Galawilawatte, Homagama.
SHOW ROOM
The Show Room is proposed to be located at
Stanley Tilakarathna Mawatha, Nugegoda.
2. PROFILE OF THE PROMOTERS
The Company will be managed by a Board of Directors
consisting of 02 members who have substantial experience in
managing and controlling of large scale Enterprises having
annual turnover exceeding Sri Lanka rupees hundred millions.
2.1 Mr. S. S. HAPUTHANTHRI
Mr. SHERAN SANJEEWA HAPUTHANTHRI of No. 91,
Old Road, Piliyandala is a Director of the Candil
Enterprises (Pvt) Ltd, Precedent Partner of Lanka
Developers and Chairman / Managing Director of Yotata
Constructions (Pvt) Ltd.
2

3. Mr. Haputhanthri holds a Bachelor of Science Degree from the
University of Peradeniya, Sri Lanka. And also he holds a Diploma
in Civil Engineering at Open University of Sri Lanka and a
Diploma in Construction Management from Institute for
Construction Training & Development (ICTAD) Sri Lanka. In
addition to the other qualifications in respective of the business.
Mr. S. S. Haputhanthri who possessed the business acumen
specially in the Construction industry can claimed a
Considerable experience in managing and controlling of the
businesses of this nature.
Mr. Haputhanthri is a well established businessmen having
wide range of business experience in various business fields in
addition to the Trading & Construction industry. He has
very good business contacts throughout the Island as well as in
abroad. His experience & business contacts will be at an
advantage to the Company to achieve the goals & objectives of
the proposed Project.
Mr. Haputhanthri’s existing business contacts specially in
respect of the Wrist Watch Trading Industry will be a
blessing for the success of the proposed project, since it is a
matter of continuing and strengthen the existing contacts for
the development of the proposed Project Expansion.
2.2 Mr. R. P. POTHUPITIYA
3

4. Mr. RASANDUN PREETHIRATHNA POTHUPITIYA, of
No. 552, Niyandagala Road, Mahakatuwana, Homagama,
Sri Lanka is a director of Candil Enterprises (Pvt) Ltd.
Mr. Pothupitiya started his carrier as the Marketing
Manager of P. B. Marketing, the main dealer of
“WESTAR” brand wrist watches. And he obtained
following achievements.
 Best Sales Award for South Asia in 2002/2003
 Best achievement in South Asia in 2003
 Best Sales Award in 2003
 Increased the dealers net work from 05 – 110.
After that he joined Hayleys Group as the Marketing
Manager for “TITAN” wrist watch sales Department and
his achievements are as follows in Hayleys Group.
 Best Sales Award in Hayleys Group - 2005/2006
 Built a net work of 150 dealers for TITAN
watches.
He has excellent knowledge in business management and
remarkably contribute to the success of their business
activities.
Mr. Pothupitiya has very good business contacts throughout
the Island as well as in abroad. His experience & business
contacts will be very helpful to the Company to achieve the
goals & objectives of the proposed Project.
His contribution to run the proposed project successfully, is
essential.
4

5. The Promoters are well established & capable in this field.
Therefore they will direct the Project Assets towards the
goals & objectives of the Project.
3. DEMAND FOR WRIST WATCHES
Sri Lankan consumers are very vigilant in making their
choices on consumable items. As a result of globalization
of trade, Sri Lankan consumers are also benefited with
having the highest quality products of every consumable
products manufactured in the world.
The Government of Sri Lanka has been always encourage
the open market economic policy and as a result of the
various kind of trade facilities, the importers in Sri Lanka
are blessed with importing any branded product
manufactured in the world.
In respect of the Watch Industry, it is also pertinent to
indicate here that there are local manufactures of watches,
clocks and alarm clocks in Sri Lanka. However since
there is no restriction of importing watches, clocks and
alarm clocks, the market is flooded with various brands
of watches including well reputed brands such as Titan,
Westar, Drror, Citizen, Seiko and other various brands.
4. MARKET SHARE
At present following brands of wrist watches are available
in the Sri Lankan market.
CITIZEN
SEIKO
Q & Q
CASIO
5

6. TITAN
WESTAR
In addition to the above brands few other brands of wrist
watches are available in the market. But all other brands
has been acquired only a 13% of the market share.
The Market Share of the different reputed brands of the
wrist watches is defected in the diagram given below.
Source : Market Survey conducted by the Proposer as at 31st
January 2006
The analysis of the diagram indicate the highest market
share of the watches has been taken over by the Citizen
Brand. This is mainly due to the concept of high quality
and cost effectiveness admired by the Sri Lankan
consumers that has been prevailed for over the years.
MARKET SHARE
39%
22%
18%
12%
5% 3% 1%
CITIZEN
SEIKO
Q & Q
CASIO
TITAN
WESTAR
OTHER
6

7. POTENTIAL MARKET
The detailed analysis of the market share, indicate that
there is a vacuum of market which can be tapped by a
potential INTRODUCER of a Brand. However the brand
which to be introduced should comply with the
requirements of the consumers of Sri Lanka. The Watch
should be of high technical quality which should satisfy
the requirement of accuracy, reliability, water – resistance,
and shock – resistance as well as the aesthetic quality.
This is mainly because the Sri Lankan customers of
watches, wrist watches are highly concerned about the
elegance and originality of designs of the watch. The
customers prefer traditional manufacturing design as well
as designs of new technologies ie: Micro – Electronics.
5. THE VISION
The vision of the proposer is to introduce a high quality
wrist watch back with latest know-how and sprit of
innovation to the Sri Lankan consumers to exceed their
expectations.
The proposer having more than 04 years of market
experience in marketing watches of various reputed brands
intends to expand it’s business activities introducing extra
working capital to the business and opening of a Retail
outlet to achieve the visions and objectives stated in this
prospectus.
7

8. Through the market surveys and other kinds of data
collections, it is proved if there is a wrist watch which
confirms to the requirements stated in this prospectus, the
marketing of that kind of Product in Sri Lanka is easy.
Earlier there was a strong competition for wrist watches
in Sri Lanka. But now the largest distributors of wrist
watches are loosing there market share due to the market
strategics implemented by the Company, Candil
Enterprises (Pvt) Ltd
In this sphere, the proposer on perusal of different kinds
of reputed brands of wrist watches to be introduced to
the Sri Lankan market.
6. FORECAST
The market forecast for the first year of the business will
be estimated as follows disregarding the different models.
Period SALES VALUE (SL Rs.)
1ST
QUARTER 10,000,000.00
2ND
QUARTER 12,000,000.00
3RD
QUARTER 14,000,000.00
4TH
QUARTER 15,000,000.00
7. PROFILE
“CANDIL ENTERPRISES” , the original business
which was commenced in the year of 2003 has
now been developed and expanded to a Private
Limited Liability Company which is to be
incorporated within the period of next ten days
8

9. by the business name of “CANDIL
ENTERPRISES (PVT) LTD.” .
8. CLIENTAILE
The main clientele of the Company with the geographical
distribution is also given below for the determination of
the extent of the distribution ability.
Name of the Shop Location of the Shop
1) Ranjan Lanka Ampara
2) Sawa Times Ambalantota
3) Ranaweera Brothers Akuressa
4) New City Watch Works Anuradhapura
5) Shiyana Fancy Center Anuradhapura
6) Susantha Jewellery Mart Anuradhapura
7) Ranjana Anuradhapura
8) Indika Jewellery Anuradhapura
9) Nimal Stores Avissawella
10) Bagasrawala & Sons Badulla
11) Weligama Trade Center Balangoda
12) New Athula Trade Center Bandarawela
13) D.N.S. Watch Repairs Battaramulla
14) M. S. Gold House Beruwala
15) Gold Watch Chilaw
16) Solar Electronics Colombo
17) Dilshras Colombo
18) Fizal Jiffry Stores Colombo
19) Sweda Enterprises Colombo
20) Wijerathna Brothers Colombo
21) Greg’s Corner Colombo
22) Sumali Textiles Deniyaya
23) Udugama Agencies Deniyaya
24) Simaya Trade Center Dickwella
25) Devi Jewellery Dehiwala
26) M. D. Gold House Ehaliyagoda
27) Jaliya Palace Eppawela
28) Nadeeza Electronics Erravur
9

10. 29) Shan Textile Eheliyagoda
30) Gift Center Eheliyagoda
31) Ranmuthu Jewelers Galewela
32) Star Line Watch Technicians Galle
33) Ranjan Lanka (Pvt) Ltd. Gampaha
34) Hema Stores Gampaha
35) Daya Brothers Gampaha
36) Hema Stores Gampaha
37) Shantha Stores Gampaha
38) Rathnayake Trade Center Giriulla
39) Dassana Fashion Habaraduwa
40) Regal Enterprises Hatton
41) Wijethunga Traders Hanwella
42) Jayantha Gold House Hingurakgoda
43) Vihingi Trade Center Homagama
44) Pubudu Trade Center Homagama
45) Menik Maligawa Ja-Ela
46) Jafna Electricals Jafna
47) Araliya Trade Center Kadawatha
48) Andrew Watch Kadawatha
49) Nihal Trade Center Kahawatte
50) Bandula Electricals
Kamburupitiya
51) Shanthi Stores Kandana
52) A.S.M. Fashion Kandana
53) Pethum Palace Kandana
54) Akmeemana Jewellers Kandy
55) Jayawickrama & Sons Kandy
56) New Fancy Mahal Kandy
57) Seetha Trade Center (Pvt) Ltd. Kandy
58) New City Palace Kandy
59) Fancy House Kandy
60) Ranjith Stores Kegalle
61) Presanna Watch Company Kegalle
62) Shalani Jewellery Kegalle
63) Silmi Trade Center Kegalle
64) Ishara Electronics Kegalle
65) Chandra Jewellery Kekirawa
66) New Nihal Watch Kiribathgoda
67) Tilakawardana Textiles Kiribathgoda
68) Thusitha Trade Center Kiribathgoda
10

11. 69) City Shoe Palace Kirindiwela
70) Star Jewellery Kuliyapitiya
71) Rajakaruna Stores Kuliyapitiya
72) New Ameer Stores Kurunegala
73) Ranmuthu Jewellers Kurunegala
74) Wedding Ring Kurunegala
75) Romini Jewellery Kurunegala
76) Jewel Palace Kurunegala
77) Much More Maharagama
78) Sasiri Trade Center Maharagama
79) Daya Traders Maharagama
80) Citizen Center Maharagama
81) Ranmuthu Gold House Maharagama
82) Sri Krishna Tex Matale
83) Lambros Trade Center Matale
84) Watch Corner Matale
85) Fashion House Matara
86) Malagoda Watch Center Matara
87) W.G. Premaratna Jewellers Matara
88) Premco Matara
89) Dakshina Lanka Matara
90) Nimalee (Pvt) Ltd. Minuwangoda
91) Alfa Super Moratuwa
92) Ashan Gift Corner Moratuwa
93) Samagi Textiles Morawaka
94) Udugama Stores Morawaka
95) Pathma Radio Monaragala
96) Jewelscity Negambo
97) Negambo Jewellers Negambo
98) New Ranjith Watch Center Negambo
99) Orient Jewellry Nittambuwa
100) Swarnamalee Traders Nugegoda
101) Nithyakala Jewellery Nugegoda
102) DSN Watch Center Nugegoda
103) Celibrations Nuwara Eliya
104) Kavithas Nuwara Eliya
105) Mayura Trade Center Nuwara Eliya
106) Panadura Watch Company Panadura
107) Suraj Time House Panadura
108) Sona Gift Center Panadura
109) Rathna Watch Center Pannala
11

12. 110) Pravina Furnishers Pannipitiya
111) Khalidas Passara
112) Seetha Holdings Pilimathalawa
113) Gunasiri Enterprises Pitabeddara
114) Prasad Textiles Piliyandala
115) Ranmaliga Gold House Piliyandala
116) Romeka Jewellery Piliyandala
117) Golden Gold Jewellery Piliyandala
118) Shimmer Electronics Piliyandala
119) Chalani Jewellery Piliyandala
120) Galle City Stores Polonnaruwa
121) Ruby Trade Center Pussellawa
122) Aradhana Trade Center Puttalam
123) Wedsco Time Line Ratmalana
124) D.T.I Fashion Ratmalana
125) Wijyaya Radio Ratnapura
126) Favourite Jewellers Ratnapura
127) New Lucky Plaza Ratnapura
128) Arosh Shopping Place Ratnapura
129) Sri Krishna Tex Rattota
130) Jewel Lanka Ruwanwella
131) Shimayas Ruwanwella
132) Suramya Jewellers Thalawa
133) Laphson Trade Center Thihariya
134) New Kumara Jewellers Tissamaharama
135) Casio Corner Trincomalee
136) Rajagulam Traders Vauniya
137) Power Watch Co. Wadduwa
138) Amarasinghe Stores Waralla
139) Tele Marketing Wattala
140) Nanda Traders Wattala
141) Lover Corner Wattala
142) Swis Gold House Wattala
143) Nanayakkara Brothers Wattala
144) Govery Jewellery Wattala
145) Harison & Sons Warakapola
146) Gift Corner Warakapola
147) Orchid Jewellery Warakapola
148) Sithumini Welimada
149) Mangala Electronics Wellawatte
150) SIM Fashion Wellawatte
12

13. 13