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Fastener India

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Fastener India

  1. 1. Fastener India- Market Overview 2009
  2. 2. Indian Market Size for Fastener <ul><li>Overall market size – More than 1500 K USD </li></ul><ul><ul><ul><li>Includes all products like: </li></ul></ul></ul><ul><ul><ul><li>Normal Tag pins, </li></ul></ul></ul><ul><ul><ul><li>Staple attaching M/c & consumables </li></ul></ul></ul><ul><ul><ul><li>Cable Tie, </li></ul></ul></ul><ul><ul><ul><li>Branded & unbranded fasteners </li></ul></ul></ul>
  3. 3. Major product category US$ 1540 US$ 0.84-1.05/K US$ 0.84-1.05/K US$ 0.7-0.0.84/K US$ 1.288-2.044/K US$ 0.476-0.742/K AD Landed price (Ex-Works HK+Freight+Import Duty+in land Haulage+Dist. Margin) 5 – 10 machines US$ 1100/pc US$ 800 – 850/pc Washing Staple machine 10,000k US$ 0.60-0.75/K US$ 0.80/k Washing Micro Tach (11042 & 11047 ) 75,000k US$ 0.60-0.75/K US$ 0.60/k to US$ 0.72/k Label Attaching & Washing 13 mm Plastic Staple – clear ST15,SPC1763 25,000k US$ 0.5-0.6/k US$ 0.50-0.60/K US$ 0.60-0.70/K Washing NPD ( 7TEND & 5TEND) 40,000k US$ 0.92-1.46/k US$ 0.24-0.28/k Label Attaching Loop Pin- 75mm/3” Ambitach PP Clear, 125mm/5” Ambitach PP Clear 175mm / 7” Ambitach PP Clear 50,000k US$ 0.34-0.53/K US$ 0.14-0.20/K Label Attaching 15mm- 125mm Regular Pin PP Clear (15 PP-125 PP) Monthly Qty projection (approximate qty) AD Price to dealer (Ex-Works HK prices) Arrow price to Dealer (Landed prices) TSP/China/SAGA (Landed prices) Application Item Description
  4. 4. Stone Washing <ul><li>Only big factories have in-washing solutions in India. </li></ul><ul><li>Mainly washing is done through small washers or job workers </li></ul><ul><li>2 years back Micro Pin were mainly used for washing but now have shifted to more cheaper options like 7TEND and 5TEND because of prices. </li></ul><ul><li>Big factories are using PS & PSM for washing also. </li></ul><ul><li>PS / PSM – 35% </li></ul><ul><li>TEND – 50% </li></ul><ul><li>Micro Pin – 15% </li></ul>
  5. 5. <ul><li>Major Competitors in the market : </li></ul><ul><li>-ARROW </li></ul><ul><li>- TSP </li></ul><ul><li>- SAGA </li></ul><ul><li>- Anchor </li></ul><ul><li>- Local & others </li></ul><ul><ul><ul><li>Earlier TSP used to sell their products through SAMTEX, But now they have opened their own office in India. </li></ul></ul></ul><ul><ul><ul><li>SAMTEX is now selling 5TEND & 7TEND in their own brand name- SAMTEX </li></ul></ul></ul><ul><ul><ul><li>Made in China staple rolls are being sold by dealers </li></ul></ul></ul><ul><ul><ul><li>Major local producer,Arrow has their own manufacturing facilities in Bangalore,India. </li></ul></ul></ul><ul><ul><ul><li>Anchor- No manufacturing unit so far in India, Pee-Vee is the main company who is importing this brand from China and selling it in India. </li></ul></ul></ul><ul><ul><ul><li>SAGA has only one dealer in India – Godolo & Godolo.They used to sell AD products in 2005. </li></ul></ul></ul><ul><ul><ul><li>But ceased to do so,after SSPL was appointed by AD as key distributor. </li></ul></ul></ul>Competitors info
  6. 6. Major Challenges <ul><li>Pricing strategy by AD : </li></ul><ul><ul><li>03 yrs back monopoly was being enjoyed by AD Products </li></ul></ul><ul><ul><li>Customers were bound to purchase our products as no alternate options available. </li></ul></ul><ul><ul><li>Present scenario has completely changed as competitors are locally manufacturing & also offering at cheaper price for imported products from China. </li></ul></ul><ul><li>We are not able to face the local competition due to the high import duty & the profit margin concerns from resellers: </li></ul>
  7. 7. Target price for major items <ul><li>Key items for immediate consideration : </li></ul><ul><li>PS ST9000 – Plastic staple attaching M/c- Target price USD 800-850 </li></ul><ul><li>Staple roll: USD 10-12 </li></ul>
  8. 8. <ul><li>Major opportunities lie with Apparel/Textile sector </li></ul><ul><li>(Mainly from PP & ATACH products) </li></ul><ul><li>Key strategic item for auxiliary industries- VNS ( Elastic staple): </li></ul><ul><li>( Target industries: Automotive, Toy, Hand tool/Garden tool, kitchen cutlery etc.) </li></ul><ul><li>Key Challenges for VNS: </li></ul><ul><li>Due to cheap labor cost available, local manufacturers are preferring for </li></ul><ul><li>Manual labor. </li></ul><ul><li>Solution: An awareness programme extensively to educate them regarding the adv. Of automated solution. </li></ul>Opportunities
  9. 9. Resellers Development Progress Under Development Already Doing                 Pee Vee                                   Abacus Textiles                                   Jaina Overseas                                   Glitz Fashion                   100,000                 Needle Mkt                     120,000                 Marudhar                     100,000                 Prerna                     20,000                 Gauge                     260,000                 SSPL Sales Projection 2010 (US$) Other Miscll TACH Regular PP Paddle TEND Nylon MF's PSM Spares PS PSM Product Categories Channels
  10. 10. Projects Under Progress – VNS Machine <ul><li>Currently Promoting VNS Machine to Toys, Tools, Kitchen and other related industries. </li></ul><ul><li>Have already given demo to some of the key customers in Tools & Toys industry but they are reluctant because of price. </li></ul><ul><li>Also targeting Socks & Mats industries. </li></ul>
  11. 11. New projects-2010 - under progress Market Research & Information under progress Market Research & Information under progress Trying to get more information Trying to get more information Given demo to 2-3 manufacturers. Approaching toy association to get their data base and leads. Action Taken 100 units Car mattress mfrs. Home furnishing Units Targeting to sell 5 units More than 200 units US$ 150k Socks Industry Targeting to sell 5 units More than 300 units US$ 250k Kitchen Cutlery Targeting to sell 10 units 2500 units (mainly unorganized sector) US$ 1000k Hand Tool/Garden Tool Targeting to sell 10 units 800 nos. (Indian toys and games manufacturers, exporters and suppliers, mostly from unorganized sector ) US$ 4800K Toy Industry Target for 2010 No. of players across India Market Volume (approximate) Target Market Segment
  12. 12. Suggestions <ul><li>Further improvement in our lead time : </li></ul><ul><li>For instance: Standard lead time is 04-06 weeks & in some cases ,it is 08-10 weeks 9 when we source from AD US) </li></ul><ul><li>Example- Spares of staple m/c (when key channel partner, SSPL is out of stock, production gets hampered for the end-user). </li></ul><ul><li>Packaging: </li></ul><ul><li>Our alternative Tier II products are to be offered in regular AD blue box </li></ul><ul><li>As the AD brand perception in Indian market largely depends on it. </li></ul>
  13. 13. <ul><li>THANK YOU </li></ul>

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